iRobot builds robots and smart home devices. Credit: Amber Case/ Flickr (Creative Commons).

E-commerce giant Amazon has agreed to amend the existing terms of its merger agreement with consumer robotics company iRobot.

The new terms will see Amazon will pay $51.75 for every share of iRobot, which is a reduction of approximately 15% from the previous offer of $61.00 per share.

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The deal was announced in August last year and was valued at approximately $1.7bn.

In a separate development, iRobot has secured a $200m financing to increase its credit facility and to fund its ongoing operations.

The change in deal price will be largely offset by the planned increase in iRobot’s net debt from this facility.

iRobot chairman and CEO Colin Angle said: “We’ve reached an amended agreement with Amazon that reflects the incurrence of iRobot’s new debt.

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“iRobot is taking on new financing that we believe is sufficient to support our operations in a hyper competitive environment and meet our liquidity needs as well as pay off iRobot’s existing debt. This new financing is the outcome of a thorough process and represents the best terms reasonably obtainable on additional financing to support our operations.”

The revised offer from Amazon comes a month after the UK regulator Competition and Markets Authority (CMA) approved the proposed deal.

Completion of the deal is subject to customary closing conditions, including regulatory approvals and consent of the amended merger agreement by iRobot’s stockholders.

iRobot specialises in designing and building robots that feature technologies and advanced cleaning, mapping and navigation concepts.

Amazon Devices SVP Dave Limp said: “We are pleased to support iRobot in this way so they can continue inventing and delivering for customers while our proposed acquisition awaits regulatory approval.

“As we said when we announced the merger last August, customers love iRobot products and we’re excited to work with them to invent in ways that make customers’ lives easier and more enjoyable.”