Amazon Terminates iRobot Deal
Amazon and iRobot have entered into a mutual agreement to terminate their previously reported acquisition agreement, originally signed on Aug. 4, 2022. The deal would have had Amazon acquiring iRobot for $61 per share in an all-cash transaction valued at approximately $1.7 billion, including iRobot’s net debt.
According to Amazon, the proposed acquisition has no path to regulatory approval in the European Union, preventing the two companies from moving forward together. Amazon added that the deal would have allowed it to invest in continued innovation by iRobot and support iRobot in lowering prices on products.
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“We’re disappointed that Amazon’s acquisition of iRobot could not proceed,” said David Zapolsky, Amazon SVP and general counsel. “We’re believers in the future of consumer robotics in the home and have always been fans of iRobot’s products, which delight consumers and solve problems in ways that improve their lives. Amazon and iRobot were excited to see what our teams could build together, and we’re deeply grateful to everyone who worked tirelessly to try and make this collaboration a reality. This outcome will deny consumers faster innovation and more competitive prices, which we’re confident would have made their lives easier and more enjoyable.
"Mergers and acquisitions like this help companies like iRobot better compete in the global marketplace, particularly against companies, and from countries, that aren’t subject to the same regulatory requirements in fast-moving technology segments like robotics," continued Zapolsky. "Undue and disproportionate regulatory hurdles discourage entrepreneurs, who should be able to see acquisition as one path to success, and that hurts both consumers and competition — the very things that regulators say they’re trying to protect.”
“iRobot is an innovation pioneer with a clear vision to make consumer robots a reality,” said Colin Angle, founder of Bedford, Mass.-based iRobot. “The termination of the agreement with Amazon is disappointing, but iRobot now turns toward the future with a focus and commitment to continue building thoughtful robots and intelligent home innovations that make life better, and that our customers around the world love.”
The companies have signed a termination agreement that resolves all outstanding matters from the transaction, including Amazon paying iRobot a previously agreed-upon termination fee.
iRobot introduced the first Roomba robot vacuum in 2002. Today, iRobot is a global enterprise that has sold more than 50 million robots worldwide. iRobot's product portfolio features technologies and advanced concepts in cleaning, mapping and navigation.
Seattle-based Amazon is No. 2 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America. PG also named the company one of its Retailers of the Century.
