Technology giant Amazon, which has been working in the internet of things (IoT) field for many years, announced that it will invest US$ 1.7 billion on August 5 to acquire the world-famous robot vacuum cleaner brand iRobot to further expand the smart home appliance market.
Reuters, the Wall Street Journal, and other foreign media reported that Amazon and iRobot issued a press release on the 5th of the month that Amazon agreed to buy iRobot outright for $1.7 billion at a price of $61 per share, and announced the closing price of iRobot. The share price, which traded at $49.99 on August 4, gained about 22% after the deal’s announcement. Amazon’s stock price, on the other hand, was down 1.24% to close at $140.80.
The report noted that the acquisition will help Amazon strengthen its influence in the consumer robotics space. In 2021, Amazon launched Alexa, Amazon’s smart voice assistant that will patrol the home and allow users to voice control other smart home devices.
When Amazon bought iRobot, it is stated that iRobot went through a difficult period. iRobot’s financial report, released on the 5th, showed that second-quarter 2022 revenue fell 30% to $255.4 million, well below the expected $303 million.
iRobot has announced that it will lay off about 140 employees due to rising costs and declining revenue. Amazon aims to take iRobot further by purchasing it during this difficult period.
First Image Source : Unsplash