Amazon is buying the maker of Roomba robot vacuum cleaners, iRobot, for $1.7 billion
Amazon has made a significant stride toward cornering the market for household robots. iRobot, the creator of Roomba robot vacuums, has agreed to sell itself to Amazon. The purchase is worth $1.7 billion in cash and will retain Colin Angle as CEO of iRobot. The two firms didn't announce when they anticipate the transaction to be completed; however, that will be dependent on both iRobot's shareholders and regulators' approval."
In making the announcement, Amazon didn't go into specifics. Senior VP of Amazon Devices Dave Limp praised iRobot's ability to "reinvent how people clean," while adding that he was looking forward to creating new items. Angle claimed that Amazon shared iRobot's desire for fresh home gadgets and thought that the internet giant would be a good match.
iRobot has been independent for 32 years. The firm was founded in 1990 by MIT researchers, and its early efforts were concentrated on military robots like PackBot. In 2002, it revealed the first Roomba — an robovac that quickly became popular and sold a million units within three years. By 2004, the firm had branched out to include robotic mops (Braava) and grew so successful that it sold off its military division the next year.
Some challenges have beset iRobot in recent months. While the firm has had a good run in recent years, it reported a loss in its most recent quarter and saw both revenue and cash reserves shrink. It also warned that economic growth would be curtailed by inflation and consumer paucity as a result of Russia's invasion of Ukraine. Although the company was optimistic about being able to return to profitability and even exceed past expectations, it may not have to worry as much with Amazon's assistance.
The partnership could revolutionize the home robot industry. These days, iRobot has stiff competition, including Anker's Eufy brand, Neato Robotics, Roborock, Shark, and Wyze. Amazon would not just give iRobot more cash to combat rivals; it would also provide significantly stronger advertising for its products. As it stands now, Amazon might use the acquisition to help fuel initiatives such as its Astro buddy or a growing army of warehouse robots.
Source: www.theverge.com
