Amazon has just taken a significant step toward securing a monopoly on the home robot industry. iRobot, the company behind the popular Roomba robotic vacuum cleaner, has agreed to be acquired by the firm.

Colin Angle will remain iRobot's CEO following the $1.7 billion cash transaction. Both iRobot shareholders and government officials must approve the acquisition for it to conclude, which neither company has said when it expects to do.

Amazon didn't go into much detail about its ambitions when it announced the transaction. IRobot CEO Tony Hsieh expressed his excitement about the company's potential to “reinvent how people clean” in a recent interview with CNBC.

Angle said Amazon shared iRobot's “passion” for creative home goods and believed the internet giant was a suitable match. Angle said, Inc.


iRobot's 32-year independence would come to an end if the transaction goes through. A group of academics from MIT started the firm in 1990 with the goal of developing military robots like PackBot.

At that moment in 2002, it released the first ever Roomba, which became a huge hit and sold over one million units by 2004. In 2016, the company divested its military business and extended its product range to include robotic mops (Braava).

iRobot has had a difficult few months. Despite its recent success, the firm suffered a loss in the most recent quarter, which was accompanied by a decrease in sales and cash on hand.

As a result of Russia's invasion of Ukraine, it predicted poorer growth owing to inflation and decreased client demand. The firm had high hopes of returning to profitability and perhaps outperforming previous projections, but with Amazon's support, it may not have to worry as much.

The transaction has the potential to shake up the home robotics industry. Anker's Eufy brand, as well as Neato, Roborock, Shark and Wyze, are all competing with iRobot.

Amazon would not only provide iRobot with additional resources to combat competitors, but the company could also benefit from Amazon's considerably greater marketing efforts, which would almost certainly favor iRobot products over the competition.

In the current state, Amazon might use the acquisition to feed initiatives like as its Astro companion or a growing horde of warehouse robots.

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