Amazon (NASDAQ:AMZN) and iRobot (NASDAQ:IRBT) have reached an agreement for the former to be acquired by the latter for $61 per share in an all-cash deal valued at around $1.7 billion, including iRobot’s net debt.
Robotics and smart home advancements are iRobot’s areas of expertise. Its product line includes cutting-edge technology and navigational, mapping, and cleaning concepts. The company reported adj. EPS of -$0.66 and revenue of $291.97M for the most recent quarter.
With very practical and innovative products, the iRobot team has long proven its ability to transform the way people clean. I’m excited to work with the team to develop concepts that will make consumers’ lives more comfortable and enjoyable because people appreciate iRobot products.
Separately, iRobot (IRBT) announced its Q2 results, which showed a 30% decline in revenue. Retailer order cutbacks, delays, and cancellations have an effect on the top line performance. In addition, the company disclosed that 10% of its staff would be let go.
Last year, Amazon, one of the biggest employers in the state, employed more than 20,000 people in Massachusetts, including staff at Whole Foods, the supermarket chain it bought in 2017 for $13.7 billion.
iRobot stock was up 19% as of 9:45 a.m. on Friday, giving the business a market capitalization of $1.61 billion.
Fundings Related To Amazon
Amazon has a reputation for making audacious acquisitions in industries that can improve its logistical and delivery processes. It agreed to a partnership with primary care provider One Medical in late July to broaden its market penetration.
And the Amazon acquisition of Boston-area online pharmacy PillPack for around $1 billion in cash and four years ago, the iRobot purchase.
Amazon has made other reforms into the booming Boston area robotics business before the takeover of iRobot. Kiva Systems in North Reading, which Amazon purchased for $775 million in 2012, served as the base for Amazon Robotics.
According to a 2018 PitchBook report, the Kiva transaction “gave Amazon an army of robots custom-made to zip through warehouses, fulfilling cargo requests at a dizzying velocity.”
About The iRobot
iRobot, a company that was founded in 1990, is well known for producing an army of household robotics, such as the vacuum cleaner Roomba and the mop Braava.
The company has faced challenges recently due to supply chain issues and tariffs from China.
According to Angle, by founding iRobot, our team has been working to develop cutting-edge, useful products that simplify consumers’ lives, which has resulted in innovations like the Roomba and iRobot OS, according to a statement from Angle.
iRobot released its second-quarter financial results along with the Amazon agreement. According to the corporation, revenue dropped from $365.6 million in the same quarter last year to $255.4 million this quarter. For the quarter, there was a $43 million net loss.
Conclusion
The e-commerce behemoth revealed that it had signed a contract to acquire iRobot Corp. (Nasdaq: IRBT). A total of 140 employees, or 10% of the company’s worldwide staff, will be let go as a result of the transaction, according to iRobot.
An iRobot spokeswoman declined to comment on the layoffs or how they affected the company’s Massachusetts staff.
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