Amazon to acquire maker of Roomba vacuum for roughly $1.7 billion

A vacuuming Roomba model robot is displayed at iRobot headquarters in Bedford, Massachusetts

Scott Eells | Bloomberg | Getty Images

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.

The deal will deepen Amazon’s presence in consumer robotics. Amazon made a bold bet on the space last year when it unveiled the Astro home robot, a $1,500 device that’s equipped with the company’s Alexa digital assistant and can follow consumers around their home. It’s also launched an array of smart home devices that consumers can control with their voice, like thermometers, lightbulbs and microwaves.

“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 — and I’m excited to work with the iRobot team to invent in ways that make customers’ lives easier and more enjoyable.”

iRobot, founded in 1990 by Massachusetts Institute of Technology roboticists, is best known for making the Roomba, a robotic vacuum that can clean consumers’ floors autonomously. It has also launched robotic mops and pool cleaners, among other products. iRobot also offers a subscription program where consumers pay $29 a month for a Roomba vacuum, automatic equipment replenishments and other services.

Shares of iRobot were halted after the deal was announced. Amazon’s stock was down about 0.5% in premarket trading.

This is breaking news. Please check back for updates.

Source: CNBC

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