Amazon Expresses Disappointment as iRobot Acquisition Falls Through

Amazon announced that it will not proceed with its planned acquisition of iRobot, a vacuum cleaner manufacturing company. In a joint press statement, both companies stated that there is “no way to obtain regulatory approval for the deal.”

iRobot also announced that it will lay off 31% of its employees, approximately 350 people, and its CEO and executive director, Colin Angle, will step down immediately. iRobot’s stocks dropped by 15% following this news.

The fate of the deal now remains uncertain after The Wall Street Journal reported that the European Union will not grant regulatory approval.

David Zapolsky, Amazon’s Deputy President and General Counsel, expressed disappointment in a statement, stating that “we are disappointed that Amazon’s acquisition of iRobot cannot proceed.”

iRobot stated that it will focus on improving profit margins, reducing expenses on research and development, and discontinuing all non-floor care-related products, including air purifiers and robotic lawnmowers.

Amazon will pay iRobot a contract termination fee amounting to $94 million.