Amazon’s irobot shares e-commerce group is expanding its portfolio of home appliances, but the purchase is likely to attract the attention of regulatory authorities.
Please use the sharing tools that you can find in articles via the Share button at the top or on the side. Copying articles to share with others is against FT.com Terms and Conditions and Copyright policy. E-Mail address email@example.com to acquire additional rights. Subscribers can share up to 10 or 20 items per month with the gift item service.
Amazon has agreed to buy iRobot, known for its Roomba robot vacuum cleaner, for $1.7 billion, while the e-commerce group is expanding its portfolio of home electronics products and personal services.
Amazon irobot shares
iRobot said it will pay its shareholders $61 per share and raise the closing price by 22 percent on Thursday. The acquisition contributes to the fact that the US technology company is choosing other products for the home, such as the Ale Llogara smart speaker and the doorbell ring.
iRobot’s Roomba is one of Amazon’s best-selling robotic vacuum cleaners. The devices are trained to avoid walls, cables and pet waste, which is a common complaint among users of previous Roomba models.
Dave Limp, senior vice president of Amazon Devices, said: “We know that time savings are important and that businesses take up valuable time that can be better used to do something that customers love.”
The Massachusetts-based company is the latest multibillion-dollar deal from Amazon, which has made a series of so-called vertical purchases to expand its access to products and services sold on its platform.
Since any agreement to buy a direct competitor is almost certainly blocked by the antitrust authorities, Amazon is only allowed to make such purchases. However, regulators are expected to take a close look at their recent transactions.
In the results released on Friday, iRobot said that its quarterly revenue fell by 30 percent to $ 255 million compared to the same period last year. He also reported an operating loss of $ 3 million, which in the same period last year was significantly higher than $ 63 million.
Increasing losses and a sharp increase in inventories led to the fact that iRobot’s cash and cash equivalents decreased from $ 201 million at the beginning of the year to only $ 63.4 million at the end of the second quarter. The figures show that the company is facing significant financial pressures caused by broader supply chain disruptions that have hit the technology industry.