Why is Amazon Acquiring Roomba Maker iRobot for $1.7 billion?


Roomba is a smart and powerful autonomous robot vacuum cleaner which is built by iRobot. Roomba robot vacuum cleaners are very popular in the US market and other countries. But now Amazon is acquiring iRobot for approximately $1.7 billion with $61 per share in cash. What is the reason behind it? Will acquiring iRobot be profitable for Amazon? Let’s learn about history and others things of iRobot.

What is iRobot?

iRobot is a technology company in the USA  that builds consumer robots to make peoples’ lives easier and comfortable. iRobot, the maker of Roomba, was founded in 1990. Three members of Massachusetts Institute of Technology established their Artificial Intelligence Lab iRobot for military defense and space exploration by designing robots. Rodney Brooks, Helen Greiner and Colin Angle are the founders of iRobot corporation. Colin Angle is the chairman and CEO of iRobot. Julie Zeiler is the Executive VP and CFO of iRobot.

Most Popular Robot of iRobot

Roomba is the most popular robot machine of iRobot. They also introduced Braava which is a floor mopper. They also have a robotic pool cleaner machine. They are inventing different kinds of robotic machines to make the consumer's lives comfortable. They also have a subscription program of automatic equipment replenishment. Amazon announced to acquire this robotic company for approximately $1.7 billion in the month of August of 2022.

What is Roomba?

Roomba is a consumer robot machine of iRobot which was introduced in 2002. Roomba is basically a computerized robotic vacuum cleaner that automatically moves itself around the home to clean the specific area where you want. A set of sensors used in Roomba to navigate the floor area of your home. The sensors are able to detect the obstacles and dirty spots of your home floor. Roomba has smart features and it is easy to use. The interesting thing is it can be operated by Wi-fi connection. Roomba has a series of models.

Why Amazon is Acquiring iRobot

In the pandemic time iRobot became so popular to the consumers. For spending more time in the home people purchased robot vacuums to clean their house at that time. But now iRobot is facing some problems to maintain their operating expenses as the revenue is falling. They had expected a loss of $1.55 per share as per the surveys of analysts. For the rising costs and decreasing revenue iRobot would cut about 10% of its employees. Amazon is acquiring iRobot when the company is facing issues.

Amazon is a big name in the world of business. They always think about consumer convenience. Nowadays they are investing in smart home devices to make the consumer life easier. The iRobot company has proven its expertise for many years to make people's lives easy and comfortable by reinventing their amazing consumer devices. They find out the customers common obstacles and work on it to solve the problems. Customers also love the devices of iRobot. The Amazon team is very happy to work with the iRobot team for the satisfaction of customers.

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