Amazon’s takeover bid on iRobot

Amazon has put $ 1.7 billion on the table to buy the entirety of the shares of iRobot, the American company known worldwide for the Roomba series of robot vacuum cleaners, as reported by the Wall Street Journal . Although the company is the reference brand in the sector, it has probably suffered from the growing competition due to the success of the category and in recent months it has lost profitability closing its balance sheets in deficit.

The stock, which was worth 68 dollars at the beginning of 2022, had dropped to around 35 in mid-July and then climbed back to 50 dollars per share. Amazon offering $ 61 in cash provides a premium of around 20%. The total investment envisaged by Amazon: 1.7 billion, is slightly higher than the 2021 turnover: 1.56 billion. Amazon is also committed to clearing the company’s debt.

The market does not seem to expect a further offer. Amazon is committed to building an ecosystem of home appliances to make Alexa the ‘smart home’ hub competing with Google.

IRobot financial

iRobot announced its financial results for the fourth quarter and full year ended January 1, 2022. The company revenue for the fourth quarter of 2021 declined 16% to 455.4 million dollar from 544.8 million in the fourth quarter of 2020. Full-year 2021 revenue, instead, recorded an increase of 9% with a total of 1,565.0 million dollar (1,430.4 million dollar in 2020).

Regarding the geographical areas, iRobot fourth-quarter 2021 revenue declined 29% in the U.S. and 2% in Emea, which was partially offset by 19% growth in Japan. Full-year 2021 revenue grew 22% in Emea, 15% in Japan and 1% in the U.S. Mid-tier and premium robots accounted for 81% of fourth-quarter 2021 robot sales, versus 78% from the prior year’s fourth quarter. Mid-tier and premium robots represented 83% of full-year 2021 robot sales, compared with 78% in 2020.

iRobot have solid second quarter 2021

The second quarter of 2021 iRobot reached a revenue of 365.6 million dollar, an increase of 31% from 279.9 million dollar in the second quarter of 2020. The growth primarily reflected healthy demand from retailers in North America and from the company’s retail and distribution partners in Emea. Revenue for the first half of 2021 recorded a 668.9 million dollar versus 472.4 million in the first half of 2020. The second-quarter 2021 revenue performance was highlighted by 40% growth in the U.S., 29% in Emea and 7% in Japan over the prior year period. Mid-tier and premium robots, which accounted for 82% of total quarterly robot sales, marked a 42% revenue growth.

iRobot®, the leading global consumer robot company, designs and builds robots that empower people to do more both inside and outside of the home. iRobot created the home robot cleaning category with the introduction of its Roomba® Robot Vacuum in 2002. Today, iRobot is a global enterprise that has sold more than 30 million robots worldwide. iRobot’s product line, including the Roomba and the Braava® family of mopping robots, feature proprietary technologies and advanced concepts in cleaning, mapping and navigation. iRobot engineers are building an ecosystem of robots and technologies to enable the smart home. For more information about iRobot, please visit www.irobot.com.