Amazon to acquire maker of Roomba vacuum for roughly $1.7 billion
Published Fri, Aug 5 20228:05 AM EDTUpdated 3 Min Ago
Annie Palmer @annierpalmer
CNBC.com
Key Points
- Amazon is acquiring iRobot for $61 a share, an all-cash deal that values the Roomba maker at $1.7 billion, the companies announced Friday.
Amazon is acquiring iRobot for $61 a share, an all-cash deal that values the Roomba maker at $1.7 billion, the companies announced Friday.
The deal will deepen Amazon's presence in consumer robotics. Amazon made a bold bet on the space last year when it unveiled the Astro home robot, a $1,500 device that's equipped with the company's Alexa digital assistant and can follow consumers around their home. It's also launched an array of smart home devices that consumers can control with their voice, like thermometers, lightbulbs and microwaves.
"Over many years, the iRobot team has proven its ability to reinvent how people clean with products that are incredibly practical and inventive — from cleaning when and where customers want while avoiding common obstacles in the home, to automatically emptying the collection bin," said Dave Limp, Amazon's hardware devices chief, in a statement. "Customers love iRobot products — and I'm excited to work with the iRobot team to invent in ways that make customers' lives easier and more enjoyable."
iRobot, founded in 1990 by Massachusetts Institute of Technology roboticists, is best known for making the Roomba, a robotic vacuum that can clean consumers' floors autonomously. It has also launched robotic mops and pool cleaners, and it has a subscription program that offers automatic equipment replenishment, among other services.
Once the deal closes, iRobot CEO Colin Angle will continue to run the company.
Shares of iRobot surged more than 18% in premarket trading, after they were briefly halted following the announcement of the deal. Amazon's stock was down about 0.5%.
This is breaking news. Please check back for updates.
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