Amazon announced a surprise acquisition of iRobot, the maker of Roombas. The all-cash transaction is valued at approximately $1.7 billion, or $61 per share, and represents a 22% premium over iRobot’s Thursday closing price of $49.99.
The agreement strengthens Amazon’s position in the field of robotics. Last year, the e-commerce giant released Astro, a consumer home robot that can function as a mobile security camera, entertainment hub, and communication tool.
The Snapdragon-powered Wi-Fi-connected bot has stereo speakers, dual cameras, a 10-inch touchscreen, and even a USB-C port.
Astro is only available by invitation and costs $999.99 during the current introductory period. After that, you can expect to pay $1,449.99 for a chance that not everyone believes is ready for mainstream audiences.
Amazon has also invested in other devices that make life easier, such as the Ring doorbell and its Alexa-powered speakers.
Read: How to earn money from Amazon with zero investment
Amazon’s acquisition of iRobot, on the other hand, is significantly larger than Ring and represents one of the most significant moves yet by newly appointed CEO Andy Jassy, who took over for founder Jeff Bezos a little more than a year ago.
In fact, the iRobot transaction is Amazon’s fourth largest to date, trailing only Whole Foods, MGM, and One Medical, which each received $13.7 billion, $8.45 billion, and $3.9 billion, respectively.
Amazon Devices SVP Dave Limp stated that they are excited to collaborate with the iRobot team to invent in ways that make customers’ lives easier and more enjoyable.
Colin Angle, Rodney Brooks, and Helen Greiner, who previously worked in MIT’s Artificial Intelligence Lab, founded iRobot in 1990. Its first consumer robotic vacuum cleaners arrived in 2002, and the company went public in 2005. iRobot also makes mopping robots for hard-surface floors and has improved its vacuums with features such as automatic dust bin emptying.
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