Amazon To Buy Robot-Vaccum-Cleaner-Maker iRobot For About $1.7 Billion

Amazon.com Inc will acquire the manufacturer of the robot vacuum cleaner iRobot Corp in an all-cash deal of around $1.7 billion. This is the latest effort by the world's biggest online retailer to expand its inventory of smart home appliances.

Amazon is expected to pay $61 for each share, which puts iRobot at 22 percent more than cent over the stock's previous trading price $49.99. In its peak at the time, the Roomba maker was trading at $197.4 because of the need for hygiene. Consumers purchased the best robot vacuum cleaners available during the lockdowns for pandemics.

In addition to sweeping dirt away in addition, Roomba vacuums, which cost up to $1,000 also collect household data that could be valuable for companies working on so-called "smart home" technology. However, the company's second-quarter revenues dropped 37% because of lower demand and the cancellation of retailers across North America and Europe, Middle East and Africa as consumers reconsider how they spend their money in the face of increasing inflation.

Analysts have predicted that cash-rich big tech firms could be into an M&A spree and profit from low valuations as a result of the pressure to grow. Amazon is holding cash and cash equivalents worth more than $37 billion in the second quarter.

The devices account just a tiny portion of total sales of Amazon the company, which offers intelligent thermostats, safety gadgets and wall-mounted smart displays and has recently introduced a robot that resembles a dog called Astro. If the agreement is ended, Amazon would be required to pay iRobot an exit charge of $94million. When the deal is completed, Colin Angle will remain as the chief executive officer of iRobot.

Amazon is also purchasing the primary healthcare company One Medical for $3.49 billion and will expand the e-commerce giant's virtual healthcare offering and adding brick and mortar medical offices for the first .