Amazon buys Roomba vacuum cleaner maker iRobot for $1.7 billion in an all-cash deal
Amazon announced today it has acquired the maker of Roomba robot vacuum cleaner iRobot Corp for $1.7 billion in an all-cash deal, as part of the latest push to grow its connected device cart products and add to its cart of smart home devices.
The announcement comes less than a month after the retail giant acquired primary health care provider One Medical for about $3.9 billion in cash to make inroads into the $3 trillion healthcare industry.
As part of the deal, Amazon said it will pay $61 per share, valuing iRobot at a premium of 22% from the stock’s last closing price of $49.99, a good bargain for Amazon considering that iRobot was once traded at $197.4 at its peak during pandemic lockdowns.
Unlike other vacuum cleaners on the market, Roomba is targeted at hygiene-conscious consumers. The Roomba vacuums can cost as much as $1,000 to collect spatial data on households that could prove valuable to companies developing so-called smart home technology.
In a statement announcing the acquisition, Amazon said, “Since introducing the Roomba vacuum in 2002, iRobot has continued to delight customers with every product generation, saving customers valuable time previously spent on household chores. The team at iRobot has developed innovative cleaning products that customers love.”
“We know that saving time matters, and chores take precious time that can be better spent doing something that customers love,” said Dave Limp, SVP of Amazon Devices. “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. 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.”
On completion of the deal, Colin Angle, chairman and CEO of iRobot, will remain as CEO of iRobot.
“Since we started iRobot, our team has been on a mission to create innovative, practical products that make customers’ lives easier, leading to inventions like the Roomba and iRobot OS,” said Angle. “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. I’m hugely excited to be a part of Amazon and to see what we can build together for customers in the years ahead.”