Amazon will acquire Roomba-maker iRobot Corp. in an all-cash deal worth about $1.7 billion, both companies announced Friday.
The deal for the robot vacuum would be Amazon’s fourth-largest acquisition.
The purchase is based on $61 a share, valuing the Bedford, Massachusetts company at a premium of 22% from the stock’s last closing price of $49.99. Its shares rose about 18% in early trading.
“Customers love iRobot products — and I’m excited to work with the iRobot team to invent in ways that make customers’ lives easier and more enjoyable” said Dave Limp, Amazon’s hardware devices chief, in a statement.
Besides cleaning floors, Roomba vacuums collect spatial data on households that could prove valuable to companies developing smart home technology.
The online retail giant is now expanding into home devices, deepening its presence in consumer robotics and devices equipped with Amazon’s Alexa digital assistant.
According to Reuters, Amazon currently has cash of more than $37 billion and is ready to move forward into further acquisitions.
Launched in 2002 the Roomba became an instant success that became more popular in the early pandemic. iRobot was founded in 1990 by the Massachusetts Institute of Technology and also has robotic mops and pool cleaners.