Amazon and makers of the Roomba robot vacuum iRobot are terminating their acquisition agreement announced in August 2022 that would have seen Amazon acquiring iRobot for $1.7 billion.
The companies released a joint statement saying they agreed to terminate the deal that called for Amazon acquiring iRobot for $61 per share in an all-cash transaction valued at about $1.7 billion. The deal included iRobot’s net debt and would have iRobot CEO Colin Angle remaining as the chief executive.
Now, Angle is stepping down as both CEO and chairman as part of a restructuring plan in the wake of the acquisition termination. Glen Weinstein, iRobot’s executive vice president and chief legal officer, has been appointed interim CEO, with Andrew Miler, lead independent director of the Board, becoming chairman.
The companies suggest that regulators in the European Union prevented the deal from moving forward. According to Reuters, EU regulators had concerns over the deal, including the possibility that Amazon could use its standing as an e-commerce giant to thwart sales of iRobot’s competitors.
In a statement, David Zapolsky, Amazon’s senior vice president and general counsel, said the company is “disappointed” that the transaction would not proceed.
“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,” Zapolsky says. “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.”
Zapolsky seems to call out regulators, saying “undue and disproportionate regulatory hurdles” discourage entrepreneurs and hurt consumers and competition.
“iRobot is an innovation pioneer with a clear vision to make consumer robots a reality,” says Angle, founder of iRobot and now the former chief executive. “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.”
The deal would have added robot vaccuums to Amazon’s arsenal of Alexa smart home products, which includes the Ring doorbell camera, Echo smart speakers and displays, thermostats and more.
