In a joint announcement, Amazon (NASDAQ: AMZN) and iRobot (NASDAQ: IRBT) have revealed the mutual decision to terminate their previously announced acquisition agreement, initially signed on August 4, 2022. This agreement, involving an all-cash transaction, aimed to enable Amazon to invest in iRobot’s ongoing innovation and facilitate a reduction in product prices for consumers.
Both companies expressed disappointment in the outcome and released statements providing their perspectives on the decision.
David Zapolsky, Amazon SVP, and General Counsel stated, “We’re disappointed that Amazon’s acquisition of iRobot could not proceed.” He underscored Amazon’s belief in the future of consumer robotics and expressed gratitude to those who worked towards making the collaboration a reality. Zapolsky also raised concerns about regulatory hurdles impacting mergers and acquisitions, stating that such obstacles discourage entrepreneurs.
Colin Angle, Founder of iRobot, acknowledged the termination’s disappointment but asserted iRobot’s commitment to the future. Angle highlighted iRobot’s focus on continuing to build thoughtful robots and intelligent home innovations.
The termination agreement, signed by both parties, resolves all outstanding matters from the transaction, including Amazon agreeing to pay iRobot the previously agreed-upon termination fee.
