Amazon is set to buy iRobot, the maker of the popular Roomba vacuum, in a deal valued at $1.7 billion, including debt, the two companies announced on Friday, August 5.
Amazon will acquire iRobot in an all-cash deal for $61 per share.
This will mark Amazon’s fourth biggest deal to date, behind its $13.7 billion acquisition of Whole Foods, the $8.45 billion purchase of MGM, and its $3.9 billion all-cash acquisition of primary healthcare provider One Medical.
Dave Limp, SVP of Amazon Devices said:
“We know that saving time matters, and chores take precious time that can be better spent doing something that customers love. 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.
Colin Angle, chairman and CEO of iRobot said:
“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. 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.”
The iRobot was founded by MIT in 1990, and the company is known for their popular Roomba robot vacuum that cleans floor automatically. The first Roomba was launched in 2002. iRobot has since then developed multiple generations of robot vacuums, mops and air purifiers, and all of those shall now be listed under Amazon’s product catalog.
The completion of the deal is pending approval from shareholders and regulators. CEO of iRobot Colin Angle will continue to run the company if the deal pushes through.
Following the announcement, shares of iRobot surged almost 20% in pre-market trading Friday.
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