The Clap
Amazon (AMZN) has reached an agreement to acquire iRobot (IRBT), both companies announced on Friday.
The Deets
Amazon will pay $61 per share in an all-cash deal for iRobot, raising iRobot’s market value to $1.7 billion.
iRobot is known for its robotic vacuum “Roomba”. With this acquisition, Amazon is looking to boost its presence in the consumer robotics market.
This acquisition is also Amazon’s fourth largest acquisition after the acquisition of Whole Foods, MGM studios, and One Medical.
Why this Matters
iRobot said it would cut 140 employees (around 10% of its workforce) due to increasing costs as well as declining revenues.
Their shares rose by 19% following the news, whereas Amazon’s shares saw a 1% decline.
