Amazon to buy Roomba-maker iRobot for US$1.7B, growing smart home device collection – National Inc AMZN.O Will Acquire Robot Vacuum Cleaner Manufacturer I’m a robot Corp. IRBT.O in an all-cash deal worth about $1.7 billion, in the world’s largest online retailer’s latest effort to add to its cart smart home devices mine.

Amazon will pay $61 per share, valuing iRobot at 22% above the stock’s final closing price of $49.99.

At the peak, Roomba manufacturer trades at $197.4 as hygiene-conscious consumers invest in premium robotic vacuums during the pandemic shutdown.

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Besides sweeping away dirt, a Roomba vacuum that costs up to $1,000 collects spatial data on households that could prove valuable to companies developing so-called smart home technology. .

However, iRobot’s second-quarter revenue fell 30% due to weak demand and cancellations from retailers in North America and Europe, the Middle East and Africa as consumers rethink how they spend their money. period of rising inflation.

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Big cash-rich tech companies could start M&A, analysts say, taking advantage of low valuations driven by growth pressures. Amazon owns more than $37 billion in cash and cash equivalents as of the second quarter.

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Devices make up a small portion of total revenue for Amazon, which sells smart thermostats, security devices, wall-mounted smart displays, and recently launched a dog-like robot called Astro.

In the event the agreement is terminated, Amazon will have to pay iRobot a termination fee of $94 million. After the completion of the transaction, Colin Angle will remain the chief executive officer of iRobot.

Amazon is also buying primary care provider One Medical ONEM.O for $3.49 billion, expanding the e-commerce giant’s virtual healthcare offering and adding new services for the first time. Traditional doctor’s office.

(Reporting by Akash Sriram and Nivedita Balu in Bengaluru; Editing by Arun Koyyur)

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