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Amazon (AMZN) acquires Roomba maker iRobot (IRBT) for $1.7 billion

The acquisition of iRobot marks Amazon's fourth-largest deal following the likes of One Medical and MGM.

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In reports from outlets like CNBC, it’s been revealed that Amazon has acquired Roomba manufacturer iRobot for $61 a share, or a value of $1.7 billion, in an all-cash deal. This acquisition now sits as Amazon’s fourth-largest deal, following previous purchases such as Whole Foods in 2017 for $13.7 billion, MGM for $8.45 billion, and One Medical for $2.9 billion.

In a statement from Dave Limp, Amazon’s hardware devices chief, he notes how iRobot has proven its ability to reinvent how people clean with its “practical and inventive” products.

Shows graph of iRobot stock at $59.64 a share up 19.30 percent following Amazon's acquisition.
© Google Finance

Outside of manufacturing the circular floor vacuum Roomba, iRobot has also produced tech such as robotic mops and pool cleaners, among other items. As popular as Roomba is, Amazon’s purchase of iRobot comes as the company looks at less than stellar Q2 results, including a 30 percent decline in revenue from the year prior. Reasons cited for the dip include “unanticipated order reductions, delays and cancellations.”

In addition to revenue falling short of expectations, iRobot also has layoffs planned and is aiming to cut around 140 employees or 10 percent of its workforce. With Amazon’s acquisition, however, shares of iRobot jumped by more than 19 percent. For those who may be concerned about Amazon’s influence on iRobot and how that may impact product development, it’s noted in the deal that CEO Colin Angle will continue to run and oversee iRobot after the deal closes.

For more on what Amazon has been up to lately, be sure to read through some of our previous coverage as well including how Amazon (AMZN) took a $3.9 billion writedown in Q2 2022 on its Rivian (RIVN) investment.

Senior Editor

Morgan is a writer from the frozen wastelands of Maine who enjoys metal music, kpop, horror, and indie games. They're also a Tetris fanatic who's fiercely competitive in games like Tetris 99... and all games in general. But mostly Tetris. You can follow Morgan on Twitter @Author_MShaver.

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