iRobot shares have been falling over the past week as regulatory opposition has mounted to the previously announced acquisition by Amazon, but this morning IRBT is down over 30% – to its lowest since 2009 – after the two firms announced that they have entered into a mutual agreement to terminate their deal agreement, originally signed on August 4, 2022.
The companies released the following statements today about the decision:
“We’re disappointed that Amazon’s acquisition of iRobot could not proceed,” said David Zapolsky, Amazon SVP and General Counsel.
“We’re believers in the future of consumer robotics in the home and have always been fans of iRobot’s products, which delight consumers and solve problems in ways that improve their lives. Amazon and iRobot were excited to see what our teams could build together, and we’re deeply grateful to everyone who worked tirelessly to try and make this collaboration a reality.
This outcome will deny consumers faster innovation and more competitive prices, which we’re confident would have made their lives easier and more enjoyable.
Mergers and acquisitions like this help companies like iRobot better compete in the global marketplace, particularly against companies, and from countries, that aren’t subject to the same regulatory requirements in fast-moving technology segments like robotics. Undue and disproportionate regulatory hurdles discourage entrepreneurs, who should be able to see acquisition as one path to success, and that hurts both consumers and competition – the very things that regulators say they’re trying to protect.”
Amazon will pay iRobot a $94 million termination fee.
Separately, iRobot said it will implement an operational restructuring plan and cut about 31% of its workforce, or 350 employees.
iRobot CEO and Chair Colin Angle has stepped down with current iRobot EVP and Chief Legal Officer named interim CEO.