Amazon will acquire iRobot in an all-cash deal for about $1.7 billion, the robot vacuum cleaner maker said on Friday. The world's largest online retailer will acquire the firm for $61 per share, valuing the company at a premium of 22 percent from the stock's last closing price.
On completion of the deal, Colin Angle will remain as the
chief executive of iRobot.
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However, iRobot's second-quarter revenue fell 30 percent due
to weak demand and cancellations from retailers in North America and Europe,
Middle East and Africa as consumers rethink how they spend their money during
rising inflation.
Analysts have said cash-rich big technology companies could
get on an M&A spree, taking advantage of low valuations due to growth
pressures. Amazon is sitting on cash and cash-equivalents of over $37 billion
as of the second quarter.
Devices make up for a fraction of the overall sales of
Amazon, which sells smart thermostats, security devices, wall mounted smart
display and had recently launched a canine-like robot called Astro.
In case the deal is terminated, Amazon would be required to
pay iRobot a termination fee of $94 million. On completion of the deal, Colin
Angle will remain as the chief executive of iRobot.
Amazon is also buying primary care provider One Medical for $3.49 billion, expanding the e-commerce giant's virtual healthcare and adding brick-and-mortar doctors' offices for the first time.
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