Amazon buys Roomba-maker iRobot Corp for about $1.7 billion: Amazon.com Inc.. plans to purchase the maker of the Robot vacuum cleaner iRobot Corp in an all-cash deal worth around $1.7 billion. It’s the latest effort by the world’s most popular online retailer to expand its inventory of smart home gadgets.
Amazon plans to offer $61 for each share, which places iRobot at an increase of 22% over the stock’s previous close price, which was $49.99. At its height in the year, the Roomba maker was trading at $197.4 since hygiene-conscious buyers bought high-end robot vacuum cleaners in the lockdowns for pandemics.
Apart from sweeping the dirt away in addition, Roomba vacuums that can cost up to $1,000 also collect the location of households, which could be useful to companies that are developing”smart home” technology. But, iRobot’s revenue for the second quarter dropped 37% because of low demand and cancellations from retailers across North America and Europe, the Middle East, and Africa as consumers reconsider how they spend their money amid the rising cost of living.
Analysts have predicted that cash-rich big tech companies may embark on an M&A spree and profit from low valuations due to the pressure of growth. Amazon has the equivalent of cash that total more than $37 billion as of the second quarter.
The devices account for just a tiny portion of the total sales of Amazon which is a retailer of smart thermostats, security gadgets, and wall-mounted smart displays and has recently introduced an animal-like robot named Astro. If the agreement is ended, Amazon would be required to pay iRobot an exit cost of $94m. When the deal is completed, Colin Angle will remain the chief executive officer of iRobot.
Amazon has also bought the primary healthcare service One Medical for $3.49 billion which will expand the company’s virtual healthcare offering and adding brick and mortar doctors’ offices for the first time.