Amazon agreed to pay $61 a share for iRobot in an all-cash deal. The price, which includes a small amount of debt, represents a 22% premium to iRobot’s closing price of $49.99 on Thursday.
iRobot shares rose 19% to $59.54 in recent trading. They are off 9.7% year to date. Amazon shares fell 0.8% to $141.41.
iRobot introduced its Roomba vacuum in 2002 and has sold more than 40 million units since. The wireless, smart-vacuum learns and maps spaces to clean dust and messes. It is a staple of Amazon’s Prime Day shopping bonanza, having been a featured product for eight straight years.
iRobot in May had projected reaching sales of $1.6 billion to $1.7 billion this year. It withdrew that guidance on Friday in light of the deal and other challenges.
Roomba would join other Amazon-owned products like the Alexa virtual assistant speaker and Ring video doorbell that together give the retailer more ways to power smart homes.