Amazon acquires Roomba maker iRobot for $1.7 billion

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Amazon will acquire iRobot in a $1.7 billion all-cash deal, the companies announced on Friday, expanding the e-commerce giant’s lineup of consumer robots and smart home devices.

iRobot is best known for its Roomba robotic vacuum cleaner, a $61 per share acquisition that highlights Amazon’s push into the home, connecting consumer products through artificial intelligence. From fitness wearables and tablets to streaming devices and its digital assistant Alexa, Amazon has developed a range of devices into an ecosystem that ties consumers more closely to the company and its services. Last year, it introduced Astro, a $1,000+ robot designed to carry small objects and keep its cameras open for intruders.

The proposed deal is also a continuation of Amazon’s business strategy to grow market share in different product categories through acquisitions. Ring, maker of video doorbell and home security product Blink have both merged with Amazon as the company expands its list of gadgets and home-centric offerings.

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The planned deal comes just two weeks after Amazon announced the purchase of primary care provider One Medical for $3.9 billion, as part of a major expansion of the tech company’s healthcare ambitions. Health care. One of its largest acquisitions to date, the combination will give Amazon a physical network of offices and healthcare providers and strengthen the company’s existing healthcare portfolio, which includes an online pharmacy and Amazon Care, a virtual and home emergency service. care delivery.

Shares of iRobot jumped nearly 20% after the Friday morning announcement.

“We know saving time is important, and household chores take up valuable time that can be better spent doing something customers love,” said Dave Limp, senior vice president of Amazon Devices. “For many years, the iRobot team has proven its ability to reinvent the way people clean with incredibly practical and inventive products.

Amazon’s offer of $61 per share represents a premium of more than 20% for iRobot.

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