Amazon Acquires iRobot For $1.7 Billion

E-commerce giant %Amazon ($AMZN) is purchasing %iRobot ($IRBT), the maker of %RobotVacuumCleaners, for $1.7 billion U.S.

In a news release, Amazon said it will pay $61 U.S. per share in cash for the %Roomba vacuum manufacturer.

Bedford, Massachusetts-based iRobot has been designing and building robot vacuums since 2002, and its Roomba cleaners sell millions of units each year.

iRobot launched earlier this year an artificial intelligence powered platform for its robot vacuum cleaners and mops. The operating system is designed to distinguish Roomba products from competing robots.

Amazon has not said what its plans are for iRobot. But the company is likely to be integrated into the smart home products segment at Amazon. Last year, Amazon launched its “Astro” smart home robot that is designed to help with small chores and tasks.

The Astro robot can map out floor plans, respond to basic commands, and recognize faces. The home robot can also answer questions, play music, and display the weather.

iRobot’s newest operating system aims to get a better understanding of a home through artificial intelligence and smart features.

The combination of Roomba, Alexa, Ring doorbells, and Amazon’s other smart home products give the e-commerce company a large amount of data.

Amazon stock is down 16% this year and trading at $142.57 U.S. per share following a 20-for-1 stock split in June.

iRobot’s stock jumped 20% on news that it is being acquired. However, before today, iRobot’s stock was down 27% at $49.99 U.S. per share.

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