Amazon’s deal to acquire Roomba maker iRobot closes companies announced todayiRobot previously stated that the transaction “cannot obtain EU regulatory approval.” iRobot also announced that it will lay off about 350 employees, accounting for about 31% of its total employees. part of reorganization.
As part of the announcement, iRobot Chairman and CEO Colin Angle will resign, iRobot’s current Executive Vice President and Chief Legal Officer Glen Weinstein will serve as interim CEO, and Andrew Miller, former lead independent director of the Board, will serve as Chairman.
The $1.4 billion acquisition was announced after difficulties with EU regulators. Last November, European Commission stated Many of iRobot’s competitors also sell their devices on Amazon’s online store, and regulators worry that Amazon could remove or reduce the popularity of rival robot vacuum cleaners, limiting competition and “resulting in higher prices, lower quality, and lower consumer innovation.” reduce”.
The deal’s failure meant Amazon would have to pay iRobot a $94 million termination fee. But the Roomba maker will need to use much of it to repay a $200 million loan it took out last year. this Financial Times report then.
Amazon’s devices and services business has a new boss since it announced plans to acquire iRobot. Dave Limp was still serving as an Amazon hardware executive when the deal was first announced.But as of the end of October 2023, Limp has Panos Panay replacedhe moved into the role from Microsoft, while Limp moved to become CEO of Jeff Bezos’ aerospace company Blue Origin.