U.S. technology giant Amazon announced the mutual termination of agreements to acquire robot vacuum manufacturer iRobot.
In a statement from Amazon, it was reminded that the agreement to acquire iRobot for cash was announced in 2022.
The statement emphasized that the agreement would allow Amazon to invest in iRobot’s innovation and enable iRobot to lower the prices of its products. It was highlighted that the failure to obtain regulatory approval from the European Union (EU) prevented the two companies from proceeding together.
The statement stated that the agreement was mutually terminated and that Amazon and iRobot had signed a termination agreement related to the acquisition, including a pre-determined termination fee.
David Zapolsky, Senior Vice President of Amazon, mentioned in the statement that the termination of the agreement would deprive consumers of faster innovation and competitive prices. He stated:
“Mergers and acquisitions like this help companies such as iRobot compete better in the global market, especially against companies in countries that are not subject to the same regulatory requirements, especially in fast-moving technology segments such as robot technology. Unnecessary and disproportionate regulatory barriers break the courage of entrepreneurs who should see acquisitions as one of the ways to success, and this harms consumers and competition that regulators claim to protect.”
Colin Angle, the Founder of iRobot, expressed disappointment at the termination of the agreement with Amazon but emphasized that iRobot would continue to produce thoughtful robots and smart home innovations.
iRobot is undergoing restructuring Meanwhile, in a statement from iRobot, it was announced that a restructuring plan would be implemented to stabilize the company after the termination of the merger agreement with Amazon.
It was stated in the statement that Colin Angle resigned from his position as Chairman of the Board and CEO of iRobot, and Glen Weinstein was appointed as the interim CEO, while Andrew Miller was appointed as the Chairman of the Board.
The statement indicated that the restructuring plan at iRobot prioritizes making the cost structure more in line with short-term revenue expectations and increasing profitability.
As part of these actions, the statement announced that approximately 350 employees, representing 31% of the workforce, would be laid off. Notifications about this matter will be made until March 30, 2024, according to the statement.
The statement also mentioned that restructuring expenses of around $12-13 million, mainly for severance pay and related costs, would be recorded in the first two quarters of 2024.
source: aa.com.tr/ prepared by Melisa Beğiç