Amazon will buy iRobot for $1.7 billion

Amazon has agreed to acquire iRobot, the maker of the Roomba robot vacuum, in a transaction valued at $3.2 billion. Amazon will pay $61 per share in cash to acquire iRobot in a deal valued at $1.7 billion. The future role of iRobot in Amazon is unclear after the transaction is completed and authorized by authorities. But Colin Angle, the CEO of iRobot, will be retained by Amazon.

iRobot has been manufacturing robot vacuums since 2002, and the company's best-selling Roomba vacuums have sold millions. Earlier this year, iRobot introduced its newest iRobot OS, an AI-powered platform for its robot vacuums and mops. The iRobot OS is designed to set Roomba devices apart from the competition with new software features and capabilities as the market for cleaning robots becomes more competitive.

As it stands, iRobot's integration with Amazon's other smart home goods is evident despite Amazon's lack of specifics. Deputy Editor of Verge Dan Seifert described Amazon's $999 Astro smart home robot as "the love child of a Roomba and an Echo Show smart display" when it was unveiled in 2017.

The long-rumored personal assistant robot will be able to draw floor layouts, respond to voice instructions, and even recognize faces. Like an Alexa-powered gadget, it can answer queries, play music, and display information like the weather. While iRobot's newest OS does not have an Alexa built-in, it still has a similar scope to Alexa's. AI and smart features will be used to learn more about a home before expanding to other aspects of a smart home.

The amount of data that Amazon collects from smart homes equipped with Roomba, Alexa, Ring doorbells, and other Amazon smart home gadgets is staggering. People will be much more concerned about their privacy and Amazon's power in the smart home industry as a result of this.