Amazon and iRobot have revised their acquisition deal, lowering the price by 15% to about $1.42B. iRobot, the manufacturer of Roomba robotic vacuums, secured a $200M financing facility to bolster its operations. As a result, Amazon slashed the acquisition price to account for the anticipated increase in iRobot's net debt. The new price is $51.75 per share in cash, down from the original $61 per share. - The financing facility was provided by Carlyle Group Inc., a private equity firm.
- During the pandemic, iRobot saw a surge in sales as more people sought efficient ways to clean their homes while staying indoors.
- However, demand for iRobot's products has declined, and in May, the company reported lower-than-expected sales and earnings per share.
Amazon's acquisition of iRobot has faced scrutiny since it was unveiled last August. - Both the FTC and European regulators are now investigating the transaction over competition concerns.
- The European Commission recently extended the deadline and will decide by Dec. 13 whether to approve or block it.
|
