Amazon Announces $1.7 Billion Acquisition of iRobot

Amazon (AMZN) and iRobot (IRBT) reached a $1.7 billion agreement for Amazon to acquire the Roomba vacuum maker in an all-cash transaction at $61 per share. The deal, announced on Aug. 5, 2022, would help Amazon expand its presence in the market for consumer robotics.

Shares of robotics manufacturer iRobot surged over 19% in early trading on Friday after the deal was announced. If completed, it would mark the fourth-largest acquisition by market value for Amazon.

iRobot specializes in the production of home robots designed to make cleaning and home upkeep easier for consumers. The company manufactures of number of autonomous devices including Roomba, an autonomous home vacuum cleaner.

Amazon’s acquisition of iRobot could expand the company’s presence in the market for consumer robotics, with a particular focus on at-home robots designed to ease consumers’ 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, SVP of Amazon Devices in a release.

“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.”

Last year, Amazon unveiled its Astro home robot that comes equipped with its Alexa voice-recognition assistant. Altogether, Amazon’s acquisition of iRobot marks its fourth-largest deal, ranking just behind its acquisitions of Whole Foods, MGM, and One Medical in recent years.

The deal is pending subject to approval from shareholders and regulators.