Amazon and iRobot, the manufacturer of Roomba robot vacuum cleaners, have announced that both companies have agreed to cancel the deal in which Amazon would have purchased iRobot’s business. The announcement was made in August 2022.
In this scenario, Amazon stated that the company felt disappointed that it was unable to proceed with the acquisition as planned. This deal would have been beneficial for both iRobot and the competitive landscape of the home robotics industry. However, regulators may have viewed it differently.
Prior to this, there was news that the proposed deal would not receive approval from the European Union (EU), although this was not explicitly mentioned in the announcement. It is likely that this issue played a role in the cancellation.
As a result of the cancellation of this business acquisition deal, Amazon will have to pay iRobot $94 million in compensation, according to the agreement.
TLDR: Amazon and iRobot have canceled a deal in which Amazon would have purchased iRobot’s business. Both companies expressed disappointment, and Amazon will compensate iRobot with $94 million. The deal may have been impacted by potential regulatory issues, including those involving the European Union.
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