Skip to content

IRBT stock rockets 20% as Amazon agrees to acquire iRobot for $1.7 billion

IRBT stock rockets 20% as Amazon agrees to acquire iRobot for $1.7 billion
Dino Kurbegovic

iRobot (NASDAQ: IRBT) will be acquired by Amazon (NASDAQ: AMZN) for $61/share in an all-cash deal valued at $1.7 billion, with the stock now up over 19% on the news.

Once customary closing conditions pass, such as approval by IRBT shareholders and regulatory approval, the deal will go through, according to an official announcement on August 5.

Giving his take on the deal, Dave Limp, Senior vice-president of Amazon Devices, said:

“Over many years, the iRobot team has proven its ability to reinvent how people clean with products that are incredibly practical and inventive. Customers love iRobot products—and I’m excited to work with the iRobot team to invent in ways that make customers’ lives easier and more enjoyable.”

Meanwhile, iRobot specializes in robots and intelligent home gadgets and innovations, including products that offer cleaning, mapping, and navigation, generating $291.97 million, as per its latest earnings release

IRBT chart and analysis

In the last month, IRBT has been trading between $36.35 to $50.88, while remaining in the middle of its 52-week range. Prices have been rising strongly lately, but with the announcement of the deal, they exploded by over 19%, creating a resistance level at $89.83, and a support line at $49.99.

IRBT 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

Combined future

Colin Angle, chairman, and CEO of iRobot commented on the passion he and his team had for making customers’’ lives easier, which led to the creation of Roomba, and now in Amazon, they see the perfect partner. 

“Amazon shares our passion for building thoughtful innovations that empower people to do more at home, and I cannot think of a better place for our team to continue our mission. I’m hugely excited to be a part of Amazon and to see what we can build together for customers in the years ahead.”

Despite AMZN shares moving marginally in today’s session, the fact that they are investing in automation and widening their portfolio of products by acquiring a fairly strong player in household robotics indicates that Amazon is looking to dominate yet another field. 

Buy stocks now with Interactive Brokers – the most advanced investment platform


Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.