Takeover by Amazon failed, iRobot remains independent
Amazon cannot take over iRobot because there would be no approval from the EU. The robot vacuum manufacturer will therefore remain independent, but will lay off 350 employees.
Not good news for the US manufacturer iRobot: the takeover by the tech group Amazon has failed. According to iRobot, the merger sought by the two companies would not have stood a chance with the European competition authorities.
As the deal already signed on 4 August 2022 has fallen through, Amazon must pay a termination fee of 94 million dollars. iRobot primarily wants to repay part of the 200 million dollar loan that the company had to take out last year. At the same time, iRobot has announced an operating loss of between 265 and 285 million dollars for the fourth quarter of 2023.
CEO leaves, 350 employees are made redundant
The consequence of the economic difficulties of the robot hoover pioneer: CEO Colin Angle, who co-founded the company in 1990, is stepping down. In addition, 350 employees will be made redundant in March - that is over 30 per cent of all employees
The merger was intended to increase competitiveness and make iRobot competitive again. The EU, on the other hand, saw a risk that other manufacturers of vacuum robots would be at a disadvantage in the market-dominating Amazon online store. Amazon had until February to dispel these concerns. However, according to media reports, the company was not prepared to make any concessions.
Cover photo: iRobot
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