By Nathalie Voit
Amazon will acquire Roomba maker iRobot for $1.7 billion, both companies said in a joint statement.
Amazon will purchase the innovative home robotics company for $61 a share, a 22% premium over its last closing price of $49.99 on August 5. The all-cash deal is valued at roughly $1.7 billion.
The definitive merger agreement is part of Amazon’s strategy to delve deeper into consumer robotics. iRobot has an array of smart home cleaning devices under its sleeve, including Braava jet m6, a $399.99 Wi-Fi-connected robot mop, and Terra t7, a robotic lawn mower.
For its part, Amazon has a few of its own standout in-house electronics ranging from Ring video doorbells to the company’s voice-activated Smart Thermostat.
“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,” Chairman and CEO of iRobot Colin Angle said in the statement. “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.”
Following the news, iRobot stock soared 19% to close at $59.54 per share in Friday trading.