Michelle ThompsonThe agreement signed in August 2022 designed to allow Amazon to invest in research and promote reduced prices for iRobot.
Amazon, a US-based e-commerce company, stated on Monday that it and consumer robot manufacturer iRobot had reached an agreement to terminate their previously announced acquisition.
The agreement, reached in August 2022, aims to allow Amazon to acquire iRobot for financial consideration, invest in its innovation, and help it cut product pricing.
“This outcome will deny consumers faster innovation and more competitive prices, which we’re confident would have made their lives easier and more enjoyable,” Amazon SVP and General Counsel David Zapolsky said in a joint statement.
Colin Angle, founder and CEO of iRobot, said: “The termination of the agreement with Amazon is disappointing, but iRobot now turns toward the future with a focus and commitment to continue building thoughtful robots and intelligent home innovations that make life better, and that our customers around the world love.”
iRobot’s products include the popular Roomba vacuum robot and other cleaning gadgets.
Amazon’s shares rose 1.34% to $161.26 per share on Monday, according to Nasdaq.
In addition, iRobot revealed in a separate statement Monday that it intends to lay off 31% of its personnel, or approximately 350 individuals.
The company stated that it intends to adopt a reorganization strategy to position itself for stability in the current market situation while focusing on profitability and expanding its market share in the mid-tier and premium categories.
The company’s stock price fell 8.77% on Monday to $15.50 per share on the Nasdaq.
