The deal will give Amazon a distinct advantage in the smart home industry.
iRobot roomba S9 – Credits: Technplay.com
Amazon just announced that it has acquired household robot maker iRobot. The Bezos firm announced the signing of the takeover agreement on Aug. 5 in a press release. According to the latter, the deal is valued at $1.7 billion.
“Over the years, the iRobot team has proven their ability to reinvent the way they clean with incredibly convenient and ingenious products (…) customers love iRobot products and I am thrilled to be working with the iRobot team to invent ways that make customers “Life just got easier and more enjoyable said Dave Limp, senior vice president of Amazon Devices.
For his part, iRobot CEO Colin Angle said: “Amazon shares our passion for developing thoughtful innovations that help people do more at home… I am thrilled to be joining Amazon. »
If Amazon doesn’t specify what actions it intends to take with iRobot in the coming months, the company stressed that Colin Angle will remain at the helm of the company. However, the purchase still needs to be approved by the relevant authorities and iRobot’s shareholders.
Buying iRobot gives Amazon access to the company’s flagship products, such as the Roomba robot vacuum cleaner, released in 2002, or the robot mop. This will allow the Silicon Valley giant to be more competitive in the smart home industry, as well as gain access to more user data.
With over 40 million robots sold, iRobot has an estimated annual revenue of approximately $1.6 billion. According to the robot maker’s recently released financial results, its turnover in the second quarter of 2022 was $255.4 million, down almost $100 million from the same period in 2021 ($365.6 million). In addition, iRobot said it intends to cut 10% of its workforce, or about 140 people. Thus, the sale of Amazon occurs when it is going through a difficult season.
iRobot’s main competitors are LG Electronics, Dyson and Xiaomi.