Amazon is buying Roomba maker iRobot in a deal worth .7 billion

Amazon is buying Roomba maker iRobot in a deal worth $1.7 billion

Amazon has bought iRobot, the technology masterminds behind the Roomba robot vacuum, for a staggering $1.7 billion deal.

The tech company has sold millions of the popular vacuum designs and automatic cleaning devices it has specialized in since 2002.

Amazon intends to keep Colin Angle as CEO of iRobot, and the acquisition will increase the company’s share of consumer robotics — alongside tech devices like Ring and Alexa.

Dave Limp, SVP of Amazon Devices, said in announcing the acquisition, “Over many years, the iRobot team has demonstrated its ability to reinvent the way people clean with incredibly practical and inventive products – from the Cleaning when and where customers want, while avoiding the usual household obstacles, right down to automatically emptying the collection bin.

Amazon bought iRobot for a whopping $1.7 billion. This will be Amazon’s fourth-largest acquisition. Technology company iRobot has sold millions of the popular vacuum designs and automated cleaning devices it has specialized in since 2002

Dave Limp, SVP of Amazon Devices said,

Dave Limp, SVP of Amazon Devices said, “I look forward to working with the iRobot team to find ways to make customers’ lives easier and more enjoyable.”

“Customers love iRobot products – and I look forward to working with the iRobot team to find ways to make customers’ lives easier and more enjoyable.”

Founded in 1990, iRobot is best known for its Roomba automatic cleaning device.

This is Amazon’s fourth-biggest deal to date, with its 2017 acquisition of Whole Foods Market still leading the way after $13.7 billion.

It was behind Amazon’s $8.45 billion purchase of Metro-Goldwyn-Mayer film studio and $3.9 billion healthcare provider One Medical.

Amazon’s four acquisitions this year were Strio.AI, GlowRoad, One Medical, and iRobot.

In 2021, the company acquired five more – Umbra 3D, television and film company Metro-Goldwyn-Mayer, Art19, Wickr and Veeqo.

Last week, Amazon announced a massive loss for the second straight quarter as consumers returned to brick-and-mortar stores.

Apple also shared lukewarm news, revealing that its profits fell 11 percent thanks to supply chain issues caused by the pandemic and China’s COVID lockdowns.

iRobot Roomba 980 cleaning vacuum.  Amazon intends to keep Colin Angle as CEO of iRobot, and the acquisition will increase the company's share of consumer robotics -- alongside tech devices like Ring and Alexa

iRobot Roomba 980 cleaning vacuum. Amazon intends to keep Colin Angle as CEO of iRobot, and the acquisition will increase the company’s share of consumer robotics — alongside tech devices like Ring and Alexa

Amazon's market overview has taken a tumble over the past six months after the company announced a massive loss for the second straight quarter

Amazon’s market overview has taken a tumble over the past six months after the company announced a massive loss for the second straight quarter

However, tech stocks rallied after hours as both Apple and Amazon sales beat expectations — despite inflation and economic turmoil that fueled fears of a recession.

Amazon’s revenue topped $121 billion in the quarter, but the company posted a $2 billion loss as it continued to work to contain costs.

Many of these were related to expansion during the sales boom it experienced at the onset of COVID. However, the loss was smaller than in the first quarter of this year, when the company reported a loss of $3.8 billion. That loss was the first since 2015 and was also impacted by a large writedown on electric vehicle company Rivian.

Amazon’s shares were still up 12 percent in after-hours trading.

CEO Andy Jassy said in a statement that Amazon is seeing an increase in its revenue as it invests in its Prime membership and offers members more benefits, such as:

He said Amazon continues to feel inflationary pressures from higher energy and transportation costs but has made progress in controlling spending related to its fulfillment network.

Between 2019 and 2021, Amazon nearly doubled the number of warehouses and data centers it leases and owns to keep up with rising consumer demand.

But as consumers changed their habits, Amazon found itself with too many employees and space, costing billions of dollars in additional costs.

The company has subleased some of its warehouses, terminated some of its leases and postponed construction of others to solve the problem.

Amazon’s chief financial officer Brian Olsavsky said during a media briefing Thursday that the company will slow its expansion plans for this year and next to better align with customer demand.

On the employee side, Amazon has been able to reduce its headcount through attrition, and staffing levels have been more in line with demand, Olsavsky said.

Complete list of Amazon acquisitions since 1998