Amazon Gives Up on its $1.4 Billion iRobot Acquisition

After the EU Commission formally objected to Amazon’s proposed acquisition of iRobot back in November, Amazon is now throwing the towel on the $1.7 billion deal. The companies have signed a termination agreement that will lead Amazon to pay the maker of the popular Roomba robot vacuum cleaners a $94 million termination fee.

“We’re disappointed that Amazon’s acquisition of iRobot could not proceed,” said David Zapolsky, Amazon SVP and General Counsel today. “This outcome will deny consumers faster innovation and more competitive prices, which we’re confident would have made their lives easier and more enjoyable. Mergers and acquisitions like this help companies like iRobot better compete in the global marketplace, particularly against companies, and from countries, that aren’t subject to the same regulatory requirements in fast-moving technology segments like robotics.”

Back in November, the EU Commission explained that Amazon’s acquisition of iRobot could give the company an incentive to restrict competition by degrading or restricting competitors’ access to the company’s online marketplace. The UK’s Competition and Markets Authority, however, had approved the deal in June 2023.

As a result of the planned acquisition falling through, iRobot also announced today an operational restructuring plan: Approximately 350 iRobot employees will be laid off, which represents 31% of the company’s workforce. Colin Angle, Chairman of the Board of Directors and CEO of the company is also stepping down, with Glen Weinstein, iRobot’s Executive Vice President and Chief Legal Officer becoming interim CEO.

Last month, we saw an even bigger deal fall through as Adobe scrapped its $20 billion acquisition of Figma after a veto threat from the UK’s CMA. As a result, Adobe had to pay Figma a $1 billion termination fee.