Amazon and iRobot have terminated their previously announced acquisition agreementwhich they originally signed on August 4, 2022, under which Amazon would have acquired iRobot for a cash payment.
This deal would have allowed Amazon to invest in iRobot’s continued innovation and help iRobot lower prices on products customers already love.
The termination agreement regulates all outstanding issues regarding the transaction
“We are disappointed that Amazon’s acquisition of iRobot could not go ahead”said David Zapolsky, Senior Vice President and General Counsel, Amazon. “We believe in the future of consumer robotics in the home. We’ve always been fans of iRobot products that delight consumers and solve problems in ways that improve their lives. Amazon and iRobot were excited to see what our teams could build together. We are deeply grateful to everyone who worked tirelessly to make this collaboration a reality. This outcome will deprive consumers of faster innovation and more competitive pricing that surely would have made their lives easier and more enjoyable. Mergers and acquisitions like these help companies like iRobot compete better in the global market. Specifically, against companies and countries that are not subject to the same regulatory requirements in fast-moving technology segments such as robotics. Inappropriate and disproportionate regulatory barriers discourage entrepreneurs. You should be able to see the acquisition as a path to success. And that hurts both consumers and competition, the very things regulators claim to want to protect.”
“iRobot is a pioneer of innovation with a clear vision to make consumer robots a reality.”he claimed Colin Angle, founder of iRobot. “The termination of the contract with Amazon is disappointing. However, iRobot now looks to the future with the focus and commitment to continue developing thoughtful robots and life-enhancing smart home innovations that our customers around the world love.”
The companies have signed a termination agreement that resolves all outstanding issues regarding the transaction. This also includes the payment of the previously agreed termination fee by Amazon to iRobot.