Amazon and iRobot have agreed to terminate their pending acquisition, as announced in a press release today. The termination comes as a result of the deal having no path to regulatory approval in the European Union, thus preventing the two companies from moving forward together.
David Zapolsky, Amazon's SVP and General Counsel, expressed disappointment, stating, "We're believers in the future of consumer robotics in the home and have always been fans of iRobot's products, which delight consumers and solve problems in ways that improve their lives." He added, "This outcome will deny consumers faster innovation and more competitive prices, which we're confident would have made their lives easier and more enjoyable."
Colin Angle, founder of iRobot, also commented on the termination, saying, "The termination of the agreement with Amazon is disappointing, but iRobot now turns toward the future with a focus and commitment to continue building thoughtful robots and intelligent home innovations that make life better, and that our customers around the world love."
The companies have signed a termination agreement that resolves all outstanding matters from the transaction, including Amazon paying iRobot the previously agreed-upon termination fee.
iRobot's shares havedropped -12.5%, and are now trading at a price of $14.87.
The company's full 8-K submission is available here.
