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Amazon to purchase the corporate behind the Roomba in a $1.7 billion deal

New York CNN Enterprise  — 

Amazon (AMZN) has agreed to purchase iRobot, the maker of the favored Roomba vacuum, in an all-cash deal valued at about $1.7 billion, together with debt, the 2 corporations introduced Friday.

The deal, which is pending approval from shareholders and regulators, has the potential to increase Amazon’s robotics lineup and deepen its presence in customers’ properties. Final yr, Amazon launched a house robotic known as Astro. The $999 20-pound dog-like robotic zooms from room to room, capturing stay video and studying your habits.

“Over a few years, the iRobot staff has confirmed its capacity to reinvent how folks clear with merchandise which are extremely sensible and creative,” stated Dave Limp, SVP of Amazon Gadgets. “I’m excited to work with the iRobot staff to invent in ways in which make prospects’ lives simpler and extra pleasing.”

After launching the primary Roomba in 2002, iRobot went on to develop a number of generations of robotic vacuums, mops and air purifiers that can now fall underneath Amazon’s product catalog.

For Amazon, the acquisition represents “an additional foray into the market of house automation,” in response to Neil Saunders, Managing Director of GlobalData, an information analytics and consulting agency.

“It’s simple to see how Amazon will combine merchandise like Roomba into the Alexa and Prime ecosystems, so that folks have one central level of monitoring and management for a lot of duties and actions,” he stated.

The deal additionally represents the second notable billion-dollar acquisition from Amazon in as many weeks. The e-commerce big entered into an settlement final month to purchase major healthcare supplier One Medical in an all-cash deal valued at roughly $3.9 billion.

Shares of iRobot surged practically 20% in pre-market buying and selling Friday following the announcement.

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