In response to the terminated deal, iRobot plans to focus on margin improvements, reduce spending on research and development, and pause all work on "non-floorcare" products. Amazon will pay iRobot a previously agreed $94 million breakup fee. The company, which was valued at roughly $1.7 billion in the original deal, now has a market capitalization of under $400 million. In July, iRobot secured a $200 million financing facility from the Carlyle Group to fund its operations until the Amazon deal was closed.
Key takeaways:
- Amazon's proposed $1.7 billion acquisition of vacuum-maker iRobot has been halted, with both companies stating there was no path to regulatory approval for the deal.
- iRobot announced it would lay off 31% of its employees and its CEO, Colin Angle, would step down immediately. The company's shares fell 10% following the news.
- The European Commission had launched a probe into the deal, arguing that it could result in Amazon hindering iRobot rivals from competing on Amazon's online marketplace.
- Following the termination of the deal, iRobot plans to focus on margin improvements, reduce spending on research and development, and pause all work on non-floorcare products. Amazon will pay iRobot a $94 million breakup fee.