- iRobot is the company behind the Roomba household robot vacuum.
- iRobot stock soared by around 20% in pre-market trade on Friday.
- The deal is Amazon’s second billion-dollar acquisition in as many weeks after buying One Medical.
The two firms announced on Friday that Amazon (AMZN) had reached an agreement to acquire iRobot, the company behind the well-known Roomba vacuum, in an all-cash deal valued at around $1.7 billion, including debt.
The agreement, which is still subject to shareholder and regulatory approval, has the potential to broaden Amazon’s selection of robotics and strengthen its position in consumers’ homes.
Astro is a household robot that Amazon unveiled last year. The 20-pound, $999 robot that resembles a dog zips around the house recording live video as it learns your routines.
Dave Limp, SVP of Amazon Devices, noted that the iRobot team has “shown over many years its ability to change how people clean with devices that are incredibly practical and imaginative.”
“I’m eager to collaborate with the iRobot team to develop ideas that will improve the quality of life for customers.”
Following the 2002 release of the original Roomba, iRobot went on to create other iterations of robot vacuums, mops, and air purifiers that will now be included in Amazon’s product line.
According to Neil Saunders, Managing Director of GlobalData, a data analytics and consultancy company, the acquisition of Amazon “represents a further incursion into the field of home automation.”
He said, “It is simple to envision how Amazon would integrate items like Roomba into the Alexa and Prime ecosystems so that users have one single point of monitoring and control for numerous duties and activities.”
The agreement marks Amazon’s second significant billion-dollar acquisition in as many weeks.
A deal to buy primary healthcare company One Medical from the e-commerce behemoth for an estimated $3.9 billion in cash was finalized last month.
Following the announcement, iRobot stock soared by around 20% in pre-market trade on Friday.
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