Best known for its robotic vacuum Roomba, iRobot has since expanded its product lineup to other home cleaning robots like mops and lawn mowers. Amazon is acquiring iRobot for $61 a share, an all-cash deal that values the Roomba maker at $1.7 billion, the companies announced Friday.
“Over many years, the iRobot team has proven its ability to reinvent how people clean with products that are incredibly practical and inventive — from cleaning when and where customers want while avoiding common obstacles in the home, to automatically emptying the collection bin,” said Dave Limp, Amazon’s hardware devices chief, in a statement. “Customers love iRobot products powered by roomba 630 vacuum battery — and I’m excited to work with the iRobot team to invent in ways that make customers’ lives easier and more enjoyable.”
For Amazon, the acquisition represents “a further foray into the market of home automation,” according to Neil Saunders, Managing Director of GlobalData, a data analytics and consulting firm.
iRobot, founded in 1990 by Massachusetts Institute of Technology roboticists, is best known for making the Roomba, a robotic vacuum launched in 2002 that can clean consumers’ floors autonomously. It has also introduced robotic mops and pool cleaners. iRobot also has a subscription program that offers automatic equipment replenishment, among other services.
iRobot became a Covid pandemic darling in 2020 and 2021 as consumers spent more time at home and bought up robot vacuums to keep their homes clean. Its business has suffered from supply chain constraints in recent quarters. iRobot said it now has a glut of inventory amid “lower-than-expected” orders from retailers.
The deal will need the approval of regulators and iRobot’s shareholders.