Amazon has inked a deal to acquire Roomba-maker iRobot for $61 per share in an all-cash transaction valued at approximately $1.7 billion.
The acquisition comes at a time when the home robot company is facing significant headwinds. The company’s Q2 results revealed that its annual revenue declined by 30% due to unanticipated order reductions, delays and cancelations from retailers across North America and the EMEA region.
With rising costs and declining revenue, the company recently laid off 140 employees, representing about 10% of its workforce.
That being said, the company has established itself as a leader in the home improvement category, having sold more than 30 million robots to customers globally since being founded in 2002. During the course of the pandemic, the company’s products became particularly popular as consumers invested in connected devices that added more ease and convenience to their lives.
“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.
“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.”
Under the terms of the deal, Amazon is expected to take on iRobot’s net debt. Colin Angle, who serves as the chairman and chief executive of iRobot, will continue to serve in his position.
Shares of the Bedford, Massachusetts-based company surged by more than 19% in early trading following the announcement.