iRobot’s shareholders were sent into a panic as Amazon announced a revised agreement to purchase the consumer robotic vacuum maker at a lower price than its original agreement last August. Amazon had initially offered $61 per share for its acquisition of iRobot, equating to a $1.7 billion all-cash deal. However, due to the ongoing antitrust scrutiny, Amazon revised the bid to $51.75 per share.
“We’ve reached an amended agreement with Amazon that reflects the incurrence of iRobot’s new debt,” said Colin Angle, Chairman and CEO of iRobot. The company has entered a $200 million financing facility to support its operations. While this decrease in price-per-share will be largely offset by the increase in iRobot’s net debt, investor confidence towards the deal has been shaken.
IRobot shares sunk more than 10% after news of the amended deal reached the public, bringing its total market price down to $42.50 USD. Despite the change in agreement, however, it appears that the merger is still likely to conclude, pending the necessary regulatory approvals.
Related: European Union Extends Deadline for Amazon’s iRobot Acquisition
Amazon’s proposed acquisition of iRobot has undergone a lengthy process of antitrust scrutiny, stretching from Europe to the U.S. Despite the U.K’s approval of the merger back in June, the European Commission has opened a full-scale investigation and has set a decision date of December 13th to either clear or block the deal. In the U.S., the Federal Trade Commission is also mulling an official investigation.
“We are pleased to support iRobot in this way so they can continue inventing and delivering for customers while our proposed acquisition awaits regulatory approval,” said Dave Limp, SVP of Amazon Devices.
iRobot CEO Colin Angle reassures the company’s shareholders: “We’ve reached an amended agreement with Amazon that reflects the incurrence of iRobot’s new debt. iRobot is taking on new financing that we believe is sufficient to support our operations in a hyper-competitive environment and meet our liquidity needs as well as pay off iRobot’s existing debt.”
As the deal progresses further, it will be left up to iRobot’s current shareholders to decide whether or not this revised acquisition bid will be approved. Despite the 15% decrease in per-share price, Amazon remains confident in the effective acquisition of iRobot. Both companies are working cooperatively with the relevant regulators in order to move the process forward, though only time will tell as the scheduled December deadline draws closer.
Source: PR News Wire
Featured News
Justice Department Moves to End NCAA Transfer Rule
May 30, 2024 by
CPI
Kenya’s Competition Authority Proposes Tougher Regulations on Big Tech
May 30, 2024 by
CPI
KKR Secures EU Antitrust Approval for $24 Billion Acquisition of Telecom Italia’s Fixed-Line Network
May 30, 2024 by
CPI
European Court Sides with Tech Giants in Italian Regulatory Dispute
May 30, 2024 by
CPI
US Steel and Nippon Steel Secure International Approvals for $14.9B Merger
May 30, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Merger Guidelines Retrospective
May 21, 2024 by
CPI
Mergers of Complements
May 21, 2024 by
CPI
Personality Traits, Private Equity, and Merger Analysis
May 21, 2024 by
CPI
The 2023 Merger Guidelines: Lessons in the Importance of Incipiency, Modern Economics, and Monopsony
May 21, 2024 by
CPI
The 2023 Merger Guidelines: Sharpening Merger Analysis
May 21, 2024 by
CPI