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Amazon buys Roomba maker iRobot in $1.7 billion deal: the online retailer’s fourth-largest acquisition

Amazon has acquired iRobot, the technology leader behind the vacuum robot Roomba, in a deal worth $1.7 billion.

The technology company has sold millions of popular vacuum designs and automatic cleaning devices, specializing in them since 2002.

Amazon wants to keep Colin Angle as CEO of iRobot, and the acquisition will increase the company’s stake in consumer robotics – along with tech devices like Ring and Alexa.

In announcing the acquisition, Dave Limp, CEO of Amazon Devices, said: “For years, the iRobot team has demonstrated the ability to reinvent how people clean with products that are incredibly practical and inventive, while avoiding the usual when and where customers want to clean. obstacles in the house, to automatically empty the collection container.

Amazon has bought iRobot for $1.7 billion. This will be Amazon’s fourth largest acquisition. Technology company iRobot has sold millions of popular vacuum designs and self-cleaning devices, specializing in them since 2002.

Dave Limp, CEO of Amazon Devices, said:

Dave Limp, CEO of Amazon Devices, said, “I’m excited to work with the iRobot team to come up with ways to make customers’ lives easier and more enjoyable.”

“Customers love iRobot products, and I’m excited to work with the iRobot team to invent ways to make customers’ lives easier and more enjoyable.”

iRobot was founded in 1990, and the company is best known for its automatic cleaning device, the Roomba.

This is Amazon’s fourth-biggest deal to date, with its 2017 purchase of Whole Foods Market still on top after it cost $13.7 million.

Behind that, Amazon bought movie studio Metro-Goldwyn-Mayer for $8.45 million and healthcare provider One Medical for $3.9 million.

Amazon’s four acquisitions this year include health clinics Strio.AI, GlowRoad, One Medical and iRobot.

In 2021, the company acquired five more: Umbra 3D, TV and film company Metro-Goldwyn-Mayer, Art19, Wickr and Veeqo.

Last week, Amazon announced a massive loss for the second quarter in a row as consumers returned to brick-and-mortar stores.

Apple also shared tepid news, revealing that its profits fell 11 percent thanks to supply chain issues caused by the pandemic and China’s COVID-19 lockdown.

iRobot Roomba 980 vacuum cleaner. Amazon wants to keep Colin Angle as CEO of iRobot, and the acquisition will increase the company's stake in consumer robotics - along with technology devices such as Ring and Alexa.

iRobot Roomba 980 vacuum cleaner. Amazon wants to keep Colin Angle as CEO of iRobot, and the acquisition will increase the company’s stake in consumer robotics – along with technology devices such as Ring and Alexa.

Amazon's stock market summary has fallen over the past six months after the company announced its second straight quarter of a big loss.

Amazon’s stock market summary has fallen over the past six months after the company announced its second straight quarter of a big loss.

However, tech stocks were rising after hours as sales from Apple and Amazon beat expectations, even as inflation and economic turmoil fueled fears of a recession.

Amazon’s sales were $121 billion in the quarter, but the company posted a $2 trillion loss as it continued to work to cut costs.

Many of these were related to the expansion during the sales bonanza experienced at the beginning of COVID. The loss was smaller than in the first quarter of this year, however, when the company announced a loss of $3.8 billion. The loss was the first since 2015, and was also caused by a major layoff at electric vehicle company Rivian.

Amazon shares rose 12 percent in after-hours trading.

CEO Andy Jassy said in a statement that Amazon is accelerating its revenue as it invests in its Prime membership and offers members more benefits, such as a recent deal to give it free access to its Grubhub meal delivery service for a year.

He said Amazon continues to feel inflationary pressure from high energy and transportation costs, but is making strides in controlling expenses related to its fulfillment network.

Between 2019 and 2021, Amazon nearly doubled the number of leased and owned warehouses and data centers to keep up with consumer demand.

But as consumers changed their habits, Amazon found itself with too many employees and too much space, which added billions in additional costs.

The company has subleased some of its warehouses, terminated some leases and delayed the construction of others to deal with the problem.

Brian Olsavsky, Amazon’s chief financial officer, said on a media call Thursday that the company is slowing expansion plans for this year and next to better align with customer demand.

On the labor front, Amazon has been able to reduce its workforce through attrition and staffing levels have kept pace with demand, Olsavsky said.

Complete list of Amazon purchases since 1998

Amazon buys Roomba maker iRobot in $1.7 billion deal: the online retailer’s fourth-largest acquisition

Source link Amazon buys Roomba maker iRobot in $1.7 billion deal: the online retailer’s fourth-largest acquisition

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