Amazon is buying iRobot, the manufacturer of Roomba robot vacuum cleaners, in a $1.7 billion all-cash deal, marking a major addition to Amazon’s growing list of smart home technology products.
The agreement values iRobot shares at $61—some 22% higher than the $49.99 per share iRobot closed at Thursday.
iRobot’s stock price surged more than 19% to $59.50 after the market opened Friday morning, though Amazon’s stock price dropped 1.3% to $140.67 Friday morning as part of a broad market downturn in response to a stronger-than-expected July jobs report.
Colin Angle will remain CEO of iRobot after the deal is finalized, the companies said in a news release.
What To Watch For
The deal requires regulatory approval and approval by iRobot’s shareholders to go through.
Amazon is among the industry leaders in smart home technology products,