Amazon said that it will not move forward with the planned acquisition of iRobot, a company that makes vacuum cleaners, as the two companies said in a press statement that “there is no path to regulatory approval for the deal.”
The vacuum cleaner manufacturer also announced that it would lay off 31% of its employees, or about 350 people, and that its president and CEO, Colin Angell, would step down from his position immediately. iRobot shares fell by 15% due to the news.
The fate of the deal became uncertain after the Wall Street Journal reported that the European Union would not provide regulatory approval.
“We are disappointed that Amazon’s acquisition of iRobot cannot continue,” David Zapolsky, Amazon’s vice president and general counsel, said in a statement.
iRobot said it will focus on improving profit margins, reducing spending on research and development and halting all business related to “non-floor care” products, including air purifiers and robotic lawn mowers.
Amazon will pay iRobot a contract termination fee worth $94 million. (agencies)
2024-01-29 15:13:48
#Amazon #cancels #acquisition #iRobot #Khaleej #newspaper
