iRobot shares rise 20% after announcing an acquisition agreement with Amazon

iRobot (NASDAQ: IRBT) stock increased 20% after announcing it had executed a definitive merger agreement with Amazon (NASDAQ: AMZN) whereby Amazon will acquire the company. iRobot is well-known for making the lives of customers easier with its innovative cleaning home products.

The company continued to improve and innovate with all their product generations, solving tough issues to help give customers the chance to get back valuable time in their days.

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Management statements 

Amazon Devices’ Senior Vice President, Dave Limp, said:

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.

Mr Limp said that they know how much saving time matters to the customer and that chores take a lot of time that one can better spend doing something else they love. He claimed that customers love the products iRobot makes and that he’s excited and happy to get the chance to work with the company’s team to create things that make customers’ lives more enjoyable and easier.

iRobot’s Chief Executive Officer and Chairman, Colin Angle, said:

Amazon shares our passion for building thoughtful innovations that empower people to do more at home, and I cannot think of a better place for our team to continue our mission. I’m hugely excited to be a part of Amazon and to see what we can build together for customers in the years ahead.

Mr Angle claimed that since the company was created, its team’s main goal has been to innovate and create practical cleaning products that’ll help make their customers’ lives easier. He said that this has led to inventions such as iRobot OS and Roomba.

Details of the deal

Amazon will get iRobot via an all-cash deal valued at roughly $1.7 billion, representing about $61 per iRobot share, including the company’s total debt.