Amazon backs out of buying iRobot
- January 29, 2024
- 0
Amazon has announced that it will not complete its planned acquisition of iRobot, an American company that specializes in the development, manufacturing and sales of robotics. CNBC reports
Amazon has announced that it will not complete its planned acquisition of iRobot, an American company that specializes in the development, manufacturing and sales of robotics.
CNBC reports this, according to Ukrinform.
“We are disappointed that Amazon’s acquisition of iRobot did not materialize,” Amazon senior vice president David Zapolsky said in a statement.
At the same time, Amazon will pay iRobot a pre-agreed termination fee of $94 million.
The acquisition deal itself initially valued iRobot at approximately $1.7 billion. iRobot’s market cap is under $400 million.
iRobot shares fell 15% after the news was published.
He said the robot vacuum maker announced it would lay off 31% of its workforce, or about 350 people, and that its CEO, Colin Engle, would resign with immediate effect.
The deal was thrown into uncertainty after The Wall Street Journal previously reported that the EU would not greenlight the deal.
The European Commission has not yet commented on the news.
As reported by Ukrinform, the French Data Protection Agency (CNIL) said it has fined Amazon’s French warehouse division 32 million euros for an “overly intrusive” system for monitoring the work of staff.
Source: Ukrinform
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