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E-Commerce giant Amazon recently announced that it will be backing out of a previously-announced deal with Roomba maker iRobot, citing the lack of “regulatory approvals” from the European Union with regards to the planned acquisition. David Zapolsky, Amazon SVP and General Counsel comments:
“We’re disappointed that Amazon’s acquisition of iRobot could not proceed… Amazon and iRobot were excited to see what our teams could build together, and we’re deeply grateful to everyone who worked tirelessly to try and make this collaboration a reality… Undue and disproportionate regulatory hurdles discourage entrepreneurs, who should be able to see acquisition as one path to success, and that hurts both consumers and competition—the very things that regulators say they’re trying to protect.”
The deal between the two companies was originally signed back on August 4, 2022. With that in mind, both Amazon and iRobot have signed a termination agreement that will resolve all outstanding matters from the transaction, including a termination fee to be paid by Amazon to iRobot, amount up to $94 million.
Roomba also disclosed that it will lay off around 350 personnel from its work force, in addition to company CEO Colin Angle stepping down from his position.
Source: CNBC
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