is on a small buyback.
The tech giant said on Friday that it is buying the company’s smart vacuum cleaners,
I’m a robot
marks the second deal in about two weeks.
I’m a robot
(ticker: IRBT) is being acquired in an all-cash transaction for about $1.7 billion, including debt. The deal plays out at $61 a share and is about 22% above iRobot’s closing price on Thursday.
iRobot is the manufacturer of the Roomba robot vacuum, which was first introduced in 2002.
virtual assistant technology, Alexa, supported The iRobot device, meaning Roomba users can clean their rooms with voice commands.
iRobot stock surged on news; it rallied nearly 20% to $59.59 on Friday morning after trading was halted earlier. Amazon.com (AMZN) fell 0.8%. A move in opposite directions should come as no surprise to investors because of the premium Amazon is paying for the transaction.
Amazon’s iRobot purchase followed shortly after buy medical care company One Medical, for about $3.9 billion, including debt, last month.
Amazon will now need to focus on turning the tide for iRobot, which is facing strong headwinds. iRobot on Friday said “unforeseen reductions in orders, delays and cancellations from retailers” affected its results. The company reported second-quarter revenue of $255 million, well below its call for consensus of $304 million.
The company also said it would limit operations and cut 140 jobs, or 10% of the company’s workforce.
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