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Roomba Maker Cannot Join Amazon, EU Rules

iRobot faces restructure after regulators cite competition concerns

Amazon and iRobot have mutually agreed to terminate their 2022 acquisition agreement after European Union regulators found that the $1.65 billion deal would have suppressed competition in the robot vacuum cleaner market.

The tie-up was envisioned by the two companies as a means to bolster innovation and offer consumers more competitive pricing on iRobot's products, notably its flagship Roomba vacuum cleaners.

This shift represents a critical juncture for iRobot, as the termination of the deal necessitates a pivot towards future strategies independent of Amazon's resources. The company announced a restructuring plan that includes cutting 350 jobs, accounting for 31% of its workforce, by the end of March. As part of the termination agreement, Amazon will pay iRobot a $94 million termination fee.

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