November 29, 2023

Amazon said Friday it is buying iRobot, known for its self-operating Roomba vacuum cleaner, for $1.7 billion.

The e-commerce company outed iRobot’s aim to make its customers’ lives “easier and more enjoyable” by eliminating time spent on cleaning chores.

“We know that saving time matters, and chores take precious time that can be better spent doing something that customers love,” said Dave Limp, senior vice president of Amazon Devices in a statement. 

Amazon will acquire iRobot for $61 per share in an all-cash transaction that will include iRobot’s net debt of about $275.6 million. The deal is subject to approval by shareholders and regulators. Upon completion, iRobot CEO Colin Angle, will remain in his position.

“Amazon shares our passion for building thoughtful innovations that empower people to do more at home, and I cannot think of a better place for our team to continue our mission,” Angle said in a statement. 

Deal targets smart-home space

Raymond James technology analyst Brian Gesuale said the deal makes sense for both companies, noting that iRobot has grown into a major player in the smart-home ecosystem. It also has a sizable and growing customer base, with nearly 16 million users of its devices. 

“Importantly, iRobot has insight to the footprint and layout of these customer’s homes which powers the efficiency and high approval rates of their robots. While the number of users pale in comparison to the numbers Amazon puts up, the mobility that iRobot offers seems nicely additive to Amazon’s footprint,” he said in a report. 

Separately, Bedford, Massachusetts-based iRobot reported its quarterly results. Revenue plunged 30% on order reductions and delays, and the company announced it was laying off 10% of its workforce.

Shares of the company, which have slumped sharply over the last year, jumped more than 19% in early trade on Friday.

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