Today, Amazon announced it will not buy iRobot, the maker of the Roomba Vacuums. This comes as Amazon faced multiple efforts to stop them, including a serious push from the EU to block the real.
Back in September Amazon said that it would now pay $51.75 a share, below the original $61-per-share price, to account for $200 million in new debt the maker of the Roomba is taking on as a result of the wait for the deal’s approval. Amazon will pay this debt down when the companies merge.
The deal, announced in August, was supposed to cement Amazon’s position as a smart home device maker, marrying the Roomba line of robot vacuums with its own family of smart speakers, displays and security cameras. But the combination has run into a wall after the EU launched its investigation.
“We’re disappointed that Amazon’s acquisition of iRobot could not proceed,” said David Zapolsky, Amazon SVP and General Counsel. “We’re believers in the future of consumer robotics in the home and have always been fans of iRobot’s products, which delight consumers and solve problems in ways that improve their lives. Amazon and iRobot were excited to see what our teams could build together, and we’re deeply grateful to everyone who worked tirelessly to try and make this collaboration a reality. This outcome will deny consumers faster innovation and more competitive prices, which we’re confident would have made their lives easier and more enjoyable. Mergers and acquisitions like this help companies like iRobot better compete in the global marketplace, particularly against companies, and from countries, that aren’t subject to the same regulatory requirements in fast-moving technology segments like robotics. Undue and disproportionate regulatory hurdles discourage entrepreneurs, who should be able to see acquisition as one path to success, and that hurts both consumers and competition—the very things that regulators say they’re trying to protect.”
“iRobot is an innovation pioneer with a clear vision to make consumer robots a reality,” said Colin Angle, Founder of iRobot. “The termination of the agreement with Amazon is disappointing, but iRobot now turns toward the future with a focus and commitment to continue building thoughtful robots and intelligent home innovations that make life better, and that our customers around the world love.”
With this deal, Amazon will pay iRobot a previously agreed on termination fee.