Amazon announced today that it is buying robot vacuum maker iRobot for over $1 billion in an all-cash deal, highlighting the online retail giant's desire to make a serious splash in the household robot market.
Colin Angle, iRobot's CEO, will remain at the helm of the company when the transaction is completed. It depends on regulatory approval as well as iRobot's shareholders.
Amazon said in a press release that it will acquire iRobot for $61 per share and cover iRobot's net debt.
Dave Limp, Amazon senior vice president of devices, said that saving time and chores can be better spent doing something customers love. iRobot has reinvented how people clean with products that are practical and inventive, from cleaning when and where customers want while avoiding common obstacles in the home, to automatically emptying the collection bin.
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iRobot was founded in 1990 by a group of MIT researchers. Since introducing the first Roomba in 2002, the company has become synonymous with householdrobots
Many of the best robot vacuums are made by iRobot. Amazon isn't a new player in the market. Astro is a robot that uses on-board processing and SLAM to map your home. Astro didn't have the same concentration as Roomba because it was too much work.
iRobot has a partnership with Amazon through their support for the voice activated assistant, Amazon'sAlexa. The relationship is going to go to the next level.
The past year has been challenging for iRobot. In the first quarter of the year, the company posted a loss compared to the same period last year. Revenue in the United States increased by a third during the first quarter.
IRobot hoped to return to profitability and exceed its expectations, according to Angle. Assuming the acquisition is completed, that dream will become a reality.
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