Amazon just took a slice of the household robots industry pie.
The popular e-commerce platform has recently announced it has entered into a definitive merger agreement with Roomba robot vacuum developer iRobot to "further make customers' lives easier and more enjoyable."
Should the merger agreement go through, Colin Angle, iRobot's current CEO, will retain his position, albeit under Amazon.
Amazon - iRobot Acquisition Deal Details
Amazon and iRobot mentioned in a joint press statement that they had agreed to enter into a definitive merger agreement in which Amazon will acquire iRobot.
Under the agreement, Amazon will pay iRobot approximately $1.7 billion in cash. The amount covers iRobot's net debt and the company's shares, valued at $61 per share.
Accordingly, the transaction's completion is subject to customary closing conditions, regulatory approvals, and approval by iRobot's shareholders.
Meanwhile, iRobot's current CEO, Colin Angle, will retain his position in the company once the agreement is completed.
Dave Limp, SVP of Amazon Devices, mentioned that Amazon's acquisition of iRobot will lead to the invention of various ways to make customers' lives easier and more enjoyable and that he is excited to work with the iRobot team to do so.
"We know that saving time matters, and chores take previous time that can be better spent doing something that customers love," Limp said.
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Meanwhile, Angle mentioned that he cannot think of a better place for the iRobot team to continue its mission of creating "innovative, practical robots that make customers' lives easier."
He added that Amazon shares iRobot's passion for building "thoughtful innovations" that allow people to do more with the time they have at home and that he is excited to see what iRobot and Amazon can build together for customers in the future.
Although the acquisition deal spells the end of iRobot's 32-year independence, The Verge mentioned in its article that the merger is a logical move for both companies.
Amazon has proven to be a capable competitor in the household robot industry with its Astro smart home robot, which the company launched in 2021. In fact, the publication's Deputy Editor, Dan Seifert, described Astro as "the love child between a Roomba and an Echo Show smart display."
As of this time, however, Amazon has yet to outline its exact plans once the acquisition deal it made with iRobot is complete, according to Engadget. Amazon's only hint at its plans is to create ways to"reinvent how people clean" to make their lives easier and more enjoyable.
Privacy Concerns On The Horizon
iRobot's acquisition will add to Amazon's list of smart home devices capable of gathering impressive data for the company.
The acquisition may lead to even more questions and concerns about how people can keep their lives and data private while having smart home devices from Amazon.
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