Amazon.com Inc AMZN.O will acquire the maker of robot vacuum cleaner iRobot Corp IRBT.O in an all-cash deal for about $1.7 billion, in the latest push by the world’s largest online retailer to add to its cart of smart home devices.
Amazon will pay $61 per share, valuing iRobot at a premium of 22% from the stock’s last closing price of $49.99.
At its peak, the Roomba maker traded at $197.4 as hygiene-conscious consumers invested in premium robot vacuum cleaners during pandemic lockdowns.
Besides sweeping up dirt, the Roomba vacuums that costs as much as $1,000 collect spatial data on households that could prove valuable to companies developing so-called smart home technology.
However, iRobot’s second-quarter revenue fell 30% due to weak demand and cancellations from retailers in North America and Europe, Middle East and Africa as consumers rethink how they spend their money during rising inflation.