Amazon and iRobot have jointly announced the termination of their acquisition agreement, initially signed on 4 August 2022, under which Amazon would have acquired iRobot for cash consideration.
The decision comes as a setback for both companies, with Amazon expressing disappointment over the missed opportunity for innovation and competitive pricing.
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Disappointment over missed innovation and competitive prices
In a statement, David Zapolsky, Amazon’s senior vice-president and general counsel, expressed disappointment over the failure of the acquisition, emphasising the company’s belief in the future of consumer robotics.
Zapolsky acknowledged iRobot’s products, praising their ability to delight consumers and solve problems in ways that enhance lives.
The termination, according to Zapolsky, will deprive consumers of faster innovation and more competitive prices that could have improved their lives.
Zapolsky further highlighted the role of mergers and acquisitions in helping companies such as iRobot compete globally, especially against entities from countries with different regulatory requirements.
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By GlobalDataHe argued that excessive regulatory hurdles discourage entrepreneurs, hindering acquisition as a viable path to success. This, he claimed, ultimately harms consumers and stifles competition in fast-moving technology segments such as robotics.
iRobot’s focus on the future despite setback
Colin Angle, the founder of iRobot, expressed disappointment over the termination of the agreement with Amazon.
However, he conveyed iRobot’s determination to focus on the future, maintaining its commitment to building thoughtful robots and intelligent home innovations.
Angle affirmed iRobot’s status as an innovation pioneer with a clear vision to make consumer robots a reality.
Resolution and termination fee
The companies have signed a termination agreement that resolves all outstanding matters from the transaction.
As part of this agreement, Amazon will pay iRobot the previously agreed-upon termination fee. The fee serves as a financial conclusion to the failed acquisition deal.
Having introduced the first Roomba robot vacuum in 2002, iRobot has grown into a global enterprise, selling more than 50 million robots worldwide.
The company’s product portfolio includes technologies and advanced concepts in cleaning, mapping, and navigation, with a focus on creating products that make homes easier to maintain and healthier places to live.
