Amazon’s takeover of iRobot is cancelled

Tech giant Amazon and robot vacuum cleaner manufacturer iRobot have agreed to abandon the proposed acquisition. The companies say they see no way to get regulatory approval.

The companies announce the joint decision in a press release. Whether the deal could go ahead had been uncertain for some time. The European Commission expressed concerns about the acquisition, fearing that Amazon could disrupt the market for robot vacuum cleaners with the acquisition. The decision on the takeover by the Commission would be announced on February 14, although it was recently rumored that the Commission was planning to block the iRobot takeover by Amazon.

Further iRobot announces that it is laying off 31 percent of its workforce. About 350 people would be affected by the layoffs. CEO Colin Angle is leaving the Roomba maker immediately. Due to the termination of the agreement, Amazon owes iRobot a compensation of $94 million. The deal was initially worth $1.7 billion.