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IRobot, which became well known for its robotic vacuums, has
struggled of late, dealing with increased competition, layoffs
and a declining stock price. In 2022 Amazon announced that it
had agreed to buy iRobot for about $1.7 billion, but that deal
was called off last year. Amazon blamed “undue and
disproportionate regulatory hurdles” after the European Union
signaled its objection to the transaction.
Amazon said at the time that it would pay iRobot a previously
agreed termination fee of $94 million and iRobot said that it
would undergo a restructuring to help stabilize the company.
iRobot said Sunday that it is now being acquired by Picea
through a court-supervised process. Picea, or Shenzhen PICEA
Robotics Co., Ltd., is iRobot's primary contract manufacturer..
With facilities in China and Vietnam, Picea has built and sold
more than 20 million robotic vacuum cleaners.
“The transaction will strengthen our financial position and will
help deliver continuity for our consumers, customers, and
partners," iRobot CEO Gary Cohen said in a statement.
iRobot said it will continue to operate as normal during the
Chapter 11 process and doesn't expect any disruption to its app
functionality, customer programs, global partners, supply chain
relationships, or ongoing product support.
The Bedford, Massachusetts-based anticipates completing the
prepackaged chapter 11 process by February.
In premarket trading, iRobot shares slid nearly 70% to $1.31.
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