Amazon to pay 15% less for iRobot after vacuum maker takes on debt

Amazon To Pay 15% Less For Irobot After Vacuum Maker Takes On Debt
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By Associated Press Reporter

Amazon is to pay roughly 15% less to acquire iRobot after the vacuum maker incurred new debt.

The companies said this week that the Seattle-based tech giant will pay 51.75 dollars (£40) per share, revised down from 61.00 dollars (£47) per share, or 1.7 billion dollars (£1.31bn) , that was agreed on last year.


iRobot, based in Massachusetts, took on a 200 million dollar (£155m) loan to fund ongoing operations, the companies said.

For Amazon, the lower acquisition price is expected to be offset by the planned increase in iRobot’s net debt.

The announcement comes as iRobot is struggling to sell more of its home-cleaning robots.

The company said revenue declined by 45% in the first three months of this year as stores and distributors recorded a decline in demand from consumers.


It also attributed the decline to a “scheduled shift” with a customer on certain orders, which are expected to ship in the second quarter.

The iRobot acquisition still faces scrutiny in the US by the Federal Trade Commission amid worries about Amazon’s growing market power.

It is also under scrutiny by regulators in the UK and the European Union. The companies said they are working with regulators in their review.

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