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An edited image showing an iRobot Roomba with Amazon branding. | Source: iRobot, Amazon

iRobot Corp. today announced it is terminating its planned acquisition by Amazon.com Inc. The companies mutually agreed on this decision and blamed “undue and disproportionate” regulatory scrutiny for the demise of the deal.

“We’re disappointed that Amazon’s acquisition of iRobot could not proceed,” said David Zapolsky, senior vice president and general counsel at Amazon, in a release. “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. 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.”

Zapolsky cited the need for global competitiveness and said that regulators are impeding innovation.

“This outcome will deny consumers faster innovation and more competitive prices, which we’re confident would have made their lives easier and more enjoyable,” he said. “Mergers and acquisitions like this help companies like iRobot better compete in the global marketplace, particularly against companies, and from countries, that aren’t subject to the same regulatory requirements in fast-moving technology segments like robotics.”

“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,” stated Zapolsky.

Amazon’s acquisition of iRobot faced multiple hurdles

The companies signed the proposed acquisition agreement on Aug. 4, 2022, and the Seattle-based e-commerce giant would have acquired the Bedford, Mass.-based robotic vacuum vendor for up to $1.7 billion in cash. That amount was lowered to $1.42 billion after iRobot acquired new debt, and it laid off 10% of its staff, or about 140 employees.

iRobot tried to reassure customers that its plans for mapping consumers’ homes would not result in the sale of private information.

In September 2022, the U.S. Federal Trade Commission (FTC) launched an investigation of Amazon and iRobot’s plans. In October 2022, iRobot and SharkNinja received an initial determination in a patent-infringement lawsuit, which ruled in favor of iRobot on two claims and for SharkNinja on two claims affecting its top-selling products.

In April 2023, iRobot got a bit of good news, as the U.K. Competition and Markets Authority cleared the proposed acquisition. In September 2023, iRobot introduced the Rooma j9+ robot vacuum, the Roombo Combo j9+ robot vacuum and mop, and iRobot OS 7.0.

In November 2023, the European Commission said that its preliminary view was that the acquisition could restrict competition. 

The companies have signed a termination agreement that resolves all outstanding matters from the transaction, including Amazon paying iRobot a previously agreed-upon $94 million termination fee.

Co-founder Colin Angle steps down as CEO

iRobot also announced that co-founder Colin Angle has stepped down as chairman and CEO. He will continue to serve on its board of directors until his current term expires in May 2024. Angle has agreed to remain with the company as a senior advisor for up to 12 months.

“iRobot is an innovation pioneer with a clear vision to make consumer robots a reality,” stated Angle in a release. “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.”

“When I founded iRobot more than three decades ago, having more than 50 million of our products in homes worldwide was beyond my wildest imagination,” he added. “I am incredibly proud of what our team has accomplished over the years. From the development of the first Roomba in 2002 to our latest generation, they have been relentless in building and delivering new and iconic ways for consumers to clean and live.”

“At the same time, I know there is a lot of work to do to map iRobot’s next chapter,” noted Angle. “Given the nature of the challenges facing the company, the board and I have mutually decided that iRobot will be better served by a new leader with turnaround experience. I would like to sincerely thank our team members around the world for their commitment to our mission of helping people do more.”

iRobot has appointed Glen Weinstein, executive vice president and chief legal officer, as interim CEO. He has been with the company since 2000. Andrew Miller, lead independent director of iRobot’s board, has been appointed chairman of the board. Miller previously worked at PTC, among other high-tech companies.

“iRobot is a pioneer of the consumer robot field and beloved by its customers around the world,” asserted Miller in a release. “With a legacy of innovation and a foundation of creativity, the board and I believe that iRobot can – and will – grow its presence and continue to build a cutting-edge suite of robotic floorcare solutions that help consumers make their homes easier to maintain and healthier places to live.”

“To do this successfully, however, we must rapidly align our operating model and cost structure to our future as a standalone company,” he added. “Though decisions that impact our people are difficult, we must move forward with a more sustainable business model, and a renewed focus on profitability. We are confident that the actions we are announcing today will enable us to chart a new strategic path for sustainable value creation.”

“On behalf of the board, I would like to extend my sincerest gratitude to Colin for more than 33 years of leadership in building a company that has changed the world,” said Miller. “I particularly appreciate Colin’s support of this transition. We are also grateful to Glen for stepping up to guide our company through this important period. As the search for our next CEO progresses, I know we will benefit from Glen’s deep knowledge of our business, having been an integral member of iRobot’s leadership team for over 20 years.” 

iRobot shares restructuring plans

iRobot today also announced preliminary fourth-quarter results. It said it anticipates reporting full-year 2023 revenue of $891 million, a 25% drop from the same period in 2022 and a GAAP (generally accepted accounting principle) operating loss of between $265 million and $285 million, and a non-GAAP operating loss of approximately $200 million.

The company ended fiscal year 2023 with $185 million in cash and cash equivalents, funded primarily from its previously announced three-year $200 million credit agreement with The Carlyle Group, which matures on July 24, 2026.

iRobot announced a number of moves to “more closely align its cost structure with near-term revenue expectations and drive profitability.” This includes restructuring its supply chain, research and development, and sales and marketing, as well as laying off more staffers and abandoning work on robotic lawn mowing, among other things. 

iRobot announced a reduction in force (RIF) of 350 employees, representing 31% of its workforce as of Dec. 30, 2023. The company plans to notify all the affected workers by March 30, 2024, and it will take restructuring charges of between $12 million and $13 million for severance and related costs.

iRobot named Jeff Engel as chief restructuring officer, and he will report directly to the board and Weinstein. It also listed the following financial and strategic initiatives:

• Achieving margin improvements and generating approximately $80 million to $100 million in savings by renegotiating terms with joint design and contract manufacturing partners
• Reducing research and development expenses by approximately $20 million year-over-year through increased offshoring of non-core engineering functions to lower-cost regions
• Centralizing global marketing activities and consolidating agency expenditures to reduce sales and marketing expenses by approximately $30 million year-over-year while seeking efficiencies in demand-generation activities
• Rightsizing the company’s global real estate footprint through additional subleasing at its corporate headquarters and the elimination of offices and facilities in smaller, underperforming locations
• Focusing iRobot’s product roadmap on core value drivers and pausing all work related to non-floorcare innovations, including air purification, robotic lawn mowing, and education

“The company will continue executing key strategic activities to support iRobot’s return to profitability, including increasing its brand recognition, driving product innovation, and redesigning its go-to-market strategy,” it said. “Enhancements to the company’s go-to-market playbook will focus the business on iRobot’s most profitable customers, geographies, and channels, including its growing direct-to-consumer channel, while rebalancing the company’s spending mix between price, promotion, and demand generation to optimize returns.”

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LAS VEGAS — CES 2024 featured a wide range of emerging technologies, from fitness devices and videogames to autonomous vehicles. But robots always have a significant presence in the sprawling exhibit halls.

The Robot Report visited numerous booths in the Eureka Park section of CES, as well as in the other focused sections of the event. Here are some highlights from this week’s event:

Mobinn climbs stairway toward success

Mobinn is a Korean startup focused on last-mile autonomous delivery vehicles. While the concept of last-mile delivery isn’t new, Mobinn demonstrated an innovative wheeled robot that can climb stairs.

The robot is capable of going up and down stairs through the implementation of compliant wheels. A self-leveling box on top of the robot keeps the cargo level, so your drinks and food don’t spill out of their containers.

Glidance guides people with vision impairments

The latest prototype of the Glidance device is fully functional for public demos and includes a camera in the handle and radar sensors in the base. | Credit: The Robot Report

RoboBusiness PitchFire 2023 winner Glidance also won a CES 2024 Innovation Award and showed the latest functional prototype of its Glide device in its booth. The robotic Glide guides sight-impaired individuals similar to a guide dog. 

The startup is designing Glide to be affordable and easy to learn how to use when it starts shipping later this year. I tried Glide firsthand (while closing my eyes). The experience was incredible, and I can only imagine how promising this technology would be for an individual with sight loss.

The team at Glidance mentioned to me that celebrity Stevie Wonder came to the Glidance booth for a demo of the product during CES.

Unitree H1 humanoid steals the show

There were two full-size humanoid robots at CES 2024.

Kepler Robotics had a stationary model of the new Kepler Forerunner K1 in its Eureka Park booth. The robot includes 14 linear-axis motors and 14 rotary-axis motors. Unfortunately, the company was unable to give live demos of the Forerunner.

The Unitree H1 humanoid robot uses sensors in its “head” to perceive the world around the robot as it navigates and avoids obstacles. | Credit: The Robot Report

The internet influencer darling of CES has to be the Unitree H1 humanoid, and the company was giving nearly continuous live demos of the H1 at its booth.

Kudos to the Unitree marketing team for its now-infamous “kick the robot” videos that have been shared on social media over the past six months. In the videos, H1 appears to be a solid humanoid platform with respectable balance and agility.

However, as a longtime robotics industry insider and experienced robotics applications engineer, I thought the Unitree H1 product demos at CES 2024 were cringe-worthy, as the Unitree demo team walked the H1 robot into crowds of “internet tech influencers” with their cameras ablaze.

The 150 lb. (68 kg) robot danced with the public inches away. A single tripping incident would have sent the robot tumbling into an innocent bystander and made instant headlines. It would have been a public relations disaster and a setback for the industry.

However, there’s no denying that the H1 was a crowd favorite at CES 2024, and the company and its robot received a lot of news media attention. 

Hyundai displays future mobility tech at CES 2024

The company had multiple large-scale booths showing autonomy concepts for the future, including autonomous mobility for both humans and freight, as well as a look at the future of autonomous construction vehicles. Unfortunately, I didn’t get to witness either of the live mobility demonstrations, but the Hyundai Construction Xite concept tractor was an impressive incarnation of autonomous construction designs.

Hyundai presented a concept for the future of autonomous construction equipment with the display of the Construction Xite tractor (Editors note: for scale, the bucket arm is over 10 ft tall). | Credit: The Robot Report

AV24 rolls into the showroom

The Indy Autonomous Challenge (IAC) had an impressive booth in the automotive hall of CES 2024, surrounded by well-known brand names. On display was a fully functional version of the newest AV24 autonomous racecar, showing off the integration of an entirely new autonomy stack in the vehicle.

The IAC has partnered with many of the leading automotive technology companies to embed the latest lidar, radar, vision, and GPS sensors within the vehicle. 

dSpace announced an extended partnership with IAC that will deliver digital twins of each university team’s vehicle along with digital twins of each of the race tracks. In turn, these will enable the teams to train the AI drivers completely in simulation and then port the AI models and drive code directly the physical race cars.

In addition, some sanctioned sim races are possible later this year, said the IAC organizers.

Embodied AI displays updated Moxie

The latest generation of Moxie by Embodied AI was on display in Amazon’s booth at CES. Embodied recently announced new tutoring functionality with the latest software release for Moxie, and it demonstrated the software at the expo.

Amazon had a separate expo suite that featured all of the physical Amazon consumer and smart home products (Amazon Astro was noticeably absent from the display). Moxie entertained the gathered crowds as it demonstrated its interactivity.

Fingervision measures gripper force

My “Unknown Discovery” award of CES 2024 goes to a young Japanese startup called Fingervision. This was a serendipitous discovery of an innovation that uses tiny cameras built into the gripper fingers of an industrial robot,

They provide feedback on the grip force and “slippage” of an item held with the gripper. This is accomplished by imaging the area where the fingers touch an object through an opaque surface. Thus the origin of the company name.

The company has deployed its first grippers into an application where robots are picking up fried chicken nuggets and packaging them.

Honorable mentions from CES 2024

Gatik keeps on trucking — autonomously

Gatik showed the third generation of its on-road autonomous truck. The company has made its mark on autonomous logistics through the deployment of driving algorithms that plans paths so that the vehicle only makes right-hand turns, avoiding more complex and dangerous left-hand turns. 

Gatik first demonstrated fully driverless, freight-only commercial deliveries on the middle mile with Walmart in 2021. Shortly after, it executed the first fully driverless deployment for Canada’s largest retailer, Loblaw.

The company also announced a partnership with Goodyear tires to develop “Smart Tires” that can provide real-time feedback to the autonomous driver with data about the condition of the tires to help maintain traction and control.

Bobcat Rogue X2 gets ready to move the earth

At CES 2024, Bobcat showed off an autonomous concept prototype, the Bobcat Rogue X2, at CES 2024. The all-electric, autonomous robot is designed for handling material movement and ground-altering operations at construction, mining, and agriculture sites.

The design prototype of the Rogue X2 at CES had wheels rather than tracks, but manually driven Bobcats can be equipped with tracks, so a production version of the Rogue could have similar configurations.

Ottonomy IO partners with Harbor Lockers

Through a new partnership with Harbor Lockers, the latest generation of Ottobot can now be configured with a payload of Harbor Lockers. This includes the Harbor Locker physical locker infrastructure, as well as the Harbor Locker application interface.

This is the first time that Ottonomy is partnering with a third-party vendor to extend the autonomous last-mile delivery solution. 

Lawn-mowing robots arrive in North America

CES is one of the world’s biggest consumer electronics shows. While The Robot Report doesn’t typically cover consumer robotics, it is notable that lawn-mowing robotics were ubiquitous at CES this year, with a dozen vendors showing their autonomous systems.

The European market for consumer lawnmowers is already mature, but the North American market is in the early stages of adoption. Without testing all of the different lawnmowing robots, it’s difficult to determine the market leaders, but the two most promising solutions that I saw at the show included the new Yarbo Lawn Mower and the latest generation of Navimow from Segway Robotics.

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Top row, from left to right: the Ella smart stroller, Soft Robotics’ food packer, and the TM25S. Bottom row: Salidrone, M4, and Zipline’s delivery drone. | Source: NVIDIA

Outside the glare of the klieg lights that ChatGPT commanded this past year, a troupe of autonomous machines nudged forward the frontiers of robotics, according to NVIDIA.

Ella smart stroller makes a splash at CES

Ella — a smart stroller from Glüxkind Technologies, a startup in Vancouver, Canada — kicked off the year when it was named an honoree in the CES 2023 Innovation Awards.

The canny carriage uses computer vision running on the NVIDIA Jetson edge AI platform to follow parents. Its AI-powered abilities, like smart braking and a rock-my-baby mode, captured the attention of media outlets like Good Morning America and The Times of London as well as an NVIDIA AI Podcast interview with its husband-and-wife cofounders.

A member of NVIDIA Inception, a free program for cutting-edge startups, Glüxkind was one of seven companies with NVIDIA-powered products recognized at the Las Vegas event in January. They included:

• John Deere for its fully autonomous tractor
• AGRIST for its robot that automatically harvests bell peppers
• Inception member Skydio for its drone that can fly at a set distance and height without manual intervention
• Neubility, another Inception member, for its self-driving delivery robot
• Seoul Robotics, a partner in the NVIDIA Metropolis vision AI software, for its Level 5 Control Tower that can turn standard vehicles into self-driving care
• WHILL for its one-person vehicle that automatically guides a user inside places like airports or hospitals

mGripAI dexterously packs food

Bedford, Mass.-based Inception member Soft Robotics introduced its mGripAI system to an $8 trillion food industry hungry for automation. It combines 3D vision and AI to grasp delicate items such as chicken wings, attracting investors that include Tyson Foods and Johnsonville.

Soft Robotics uses the NVIDIA Omniverse platform and NVIDIA Isaac Sim robotics simulator to create 3D renderings of chicken parts on conveyor belts or in bins. With help from AI and the ray-tracing capabilities of NVIDIA RTX technology, the robot gripper can handle as many as 100 picks per minute, even under glare or changing light conditions.

“We’re all in on Omniverse and Isaac Sim, and that’s been working great for us,” David Weatherwax, senior director of software engineering at Soft Robotics, said in a January interview.

TM25S provides a keen eye in the factory

In a very different example of industrial digitalization, electronics manufacturer Quanta is inspecting the quality of its products using the TM25S, an AI-enabled robot from its subsidiary, Techman Robot.

Using Omniverse, Techman built a digital twin of the inspection robot — as well as the product to be inspected — in Isaac Sim. Programming the robot in simulation reduced time spent on the task by over 70%, compared with programming manually on the real robot.

Then, with optimization tools in Isaac Sim, Techman explored a massive number of program options in parallel on NVIDIA GPUs. The end result, shown in the video below, was an efficient solution that reduced the cycle time of each inspection by 20%.

Saildrone takes to the seas for data science

Saildrone, another Inception startup in Alameda, Calif., created uncrewed watercraft that can cost-effectively gather data for science, fisheries, weather forecasting and more.

NVIDIA Jetson modules process data streams from their sensors, some with help from NVIDIA Metropolis vision AI software such as NVIDIA DeepStream, a development kit for intelligent video analytics.

The video below shows how three of Saildrone’s smart sailboats are helping evaluate ocean health around the Hawaiian Islands.

Caltech M4 sets its sights on Mars

The next stop for one autonomous vehicle may be the red planet.

Caltech’s Multi-Modal Mobility Morphobot, or M4, can configure itself to walk, fly, or drive at speeds up to 40 mph (see video below). An M42 version is now in development at NASA as a Mars rover candidate and has attracted interest for other uses such as reconnaissance in fire zones.

Since releasing a paper on it in Nature Communications, the team has been inundated with proposals for the shape-shifting drone built on the NVIDIA Jetson platform.

Zipline delivery drones fly high

The year ended on a high note with Zipline announcing that its delivery drones flew more than 55 million miles and made more than 800,000 deliveries since the company’s start in 2011. The San Francisco-based company said it now completes one delivery every 70 seconds, globally.

That’s a major milestone for the Inception startup, the field it’s helping pioneer, and the customers who can receive everything from pizza to vitamins up to seven faster than by truck.

Zipline’s latest drone uses two Jetson Orin NX modules. It can carry 8 lb. of cargo for 10 miles at up to 70 mph to deliver packages in single-digit minutes while reducing carbon emissions 97% in comparison with gasoline-based delivery vehicles.

NVIDIA notes maker machines that inspire and amuse

Individual makers designed two autonomous vehicles this year worth special mentions.

Goran Vuksic with his AI-powered droid. | Source: NVIDIA

Kabilan KB, a robotics developer and student in Coimbatore, India, built an autonomous wheelchair using Jetson to run computer vision models that find and navigate a path to a user’s desired destination. The undergrad at the Karunya Institute of Technology and Sciences aspires to one day launch a robotics startup.

Finally, an engineering manager in Copenhagen who’s a self-described Star Wars fanatic designed an AI-powered droid based on an NVIDIA Jetson Orin Nano Developer Kit. Goran Vuksic shared his step-by-step technical guide, so others can build their own sci-fi companions.

More than 6,500 companies and 1.2 million developers — as well as a community of makers and enthusiasts — use the NVIDIA Jetson and Isaac platforms for edge AI and robotics.

To get a look at where autonomous machines will go next, see what’s coming at CES in 2024.

Editor’s note: This blog reposted with permission from NVIDIA.

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An edited image showing an iRobot roomba with Amazon branding. | Source: iRobot, Amazon

The European Commission shared an update on its investigation into Amazon.com Inc.’s $1.7 billion acquisition of iRobot Corp. The EC informed Amazon yesterday that its preliminary view is that the acquisition may restrict competition in the market for robot vacuum cleaners. 

iRobot shares have had a volatile week. On Friday, its shares were up 34% when Reuters reported that the EC was set to give unconditional approval for the acquisition. Reuters cited three people familiar with the matter in its reporting. 

However, the company’s shares dropped 17% on Monday when the EC made its preliminary statement. The commission first opened its investigation into the acquisition in July and is expected to rule on the deal by Feb. 14.

Amazon first announced its plans to purchase iRobot in August 2022. The deal was quickly put on hold in September 2022, when the U.S. Federal Trade Commission officially started an antitrust investigation.  

In the past few months, the European Commission has conducted a wide-ranging investigation to better understand the robot vacuum market and the potential impact of the deal. This investigation has included analyzing internal documents provided by Amazon and iRobot.

The EC has also gathered views from market participants, including suppliers of robot vacuums and other smart home devices, as well as providers of online sales channels. 

The EU specifies antitrust concerns

The European Commission’s concerns with the merger center around Amazon’s ability to throttle iRobots’ competition in its online marketplace. The commission said it is concerned that Amazon could hamper rival robotic vacuum makers’ ability to effectively compete with iRobot in the European Union or national markets. 

In particular, the EC said that “Amazon may have the ability and incentive to foreclose iRobot’s rivals.” It could do this by engaging in several strategies aimed at making it more difficult for rivals to sell robotic vacuums on Amazon. The company could do this by: 

• Delisting rival robot vacuum makers
• Reducing the visibility of rival vacuum makers in both non-paid and paid results
• Limiting access to certain widgets, such as the “other products you might like” widget, or certain commercially attractive product labels, like “Amazon’s Choice” or “Works with Alexa”
• Directly or indirectly raising the costs of iRobot’s rivals 

The commission found that Amazon was a particularly important channel for selling robotic vacuums in France, Germany, Italy, and Spain. Consumers in these countries rely on Amazon for product discovery and to make their final purchasing decisions, it said. 

Does Amazon has a financial incentive to limit iRobot competition?

Not only did the European Commission say that Amazon has the ability to throttle iRobot’s competition in its marketplace, but it noted that it may have a financial incentive to do so. 

The commission said that after the merger, Amazon could gain more from additional sales of iRobot’s vacuums than it would lose from fewer e-commerce sales of iRobot’s rivals and other related products. The EC said these gains could include additional data gathered from iRobot’s users. 

Any throttling of competition on Amazon’s marketplace could lead to higher prices, lower quality, and less innovation for consumers, said the EC.

The global market for robotic vacuum cleaners could experience a compound annual growth rate (CAGR) of 6.9%, expanding from $6.41 billion in 2023 to $8.37 billion by 2027, according to Research and Markets. It noted that Asia-Pacific and Western Europe are the largest markets.

While the EU hasn’t made its final decision on whether Amazon can acquire iRobot, the situation isn’t looking great for the retail giant. 

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iRobot’s latest Roomba Combo i5+ is a combo robot vacuum and mop. | Source: iRobot

iRobot expanded its lineup of 2-in-1 robots with two new robots, the Roomba Combo j5+ ($799) and the Roomba Combo i5+ ($549). Both of these new Roomba are combo robot vacuums and mops that feature a swappable bin depending on the cleaning mode being used.

Both robots have a vacuum bin and a Roomba Combo bin. With the vacuum bin installed, the Roombas can clean a mix of floor types, from carpets and rugs to hard surfaces. The Roomba Combo bin can be filled with water or a compatible cleaning solution to mop floors. 

“Following the successful launch of the Roomba Combo j7+, customer demand for more iRobot 2-in-1 cleaning devices continues to grow,” Barry Schliesmann, chief product officer at iRobot, said. “We’re meeting that demand by expanding our 2-in-1 fleet with the Roomba Combo j5+ and Roomba Combo i5+, giving customers greater choice when it comes to an iRobot vacuum and mop option that best suits their home and budget.”

When using the vacuum bin, the Roomba Combo j5+ uses power-lifting suction and its Dual Multi-Surface Rubber Brushes to clean. It’s able to avoid tangles with pet hair while still picking up anything from small particles to hair to large debris. 

The Roomba Combo j5+ also uses Dirt Detect Technology which allows it to detect dirtier areas and clean them more thoroughly. It also automatically empties itself into its Clean Base Automatic Dirt Disposal, which holds up to 60 days of debris. 

When the Roomba Combo bin is installed, the robot will automatically detect when it’s time for a combination clean. When it knows it needs to clean, the Roomba Combo j5+ will transform into a robot vacuum that also mops and employs its Dual Multi-Surface Rubber Brushes, Power-Lifting Suction, an Edge-Sweeping Brush, and a mopping pad to tackle debris, dirty footprints, and dust. 

The Roomba Combo i5+ robot vacuum and mop is similar to the j5+ but is made for smaller homes with mostly hard floor surfaces. It converts between a hard floor vacuum and a mop after switching bins, like the Roomba j5+. 

Amazon is currently in the process of acquiring iRobot. The planned acquisition was first announced in August 2022. The deal was quickly put on hold in September 2022, when the Federal Trade Commission (FTC) officially started an antitrust investigation into the deal.

Most recently, despite the UK Competition and Markets Authority (CMA) clearing Amazon’s $1.7 billion pending acquisition of iRobot, the European Union (EU) opened an anti-trust investigation into the deal.

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iRobot’s Roomba Combo j7+. | Source: iRobot

Despite the UK Competition and Markets Authority (CMA) clearing Amazon’s $1.7 billion pending acquisition of iRobot just last week, the European Union (EU) seems ready to open a full-scale anti-trust investigation into the deal, according to Reuters. 

On July 6, according to Reuters, the EU will start a four-month investigation at the end of its preliminary review of the acquisition. While Amazon still has a chance to convince the European Commission that the deal wouldn’t interfere with antitrust laws, sources told Reuters the odds against that are high.

Amazon first announced its plans to purchase iRobot in August 2022. The deal was quickly put on hold in September 2022, when the Federal Trade Commission (FTC) officially started an antitrust investigation into the deal.  

While Amazon hasn’t commented much publicly on the FTC or EU investigations, it did previously highlight the size of the robot vacuum cleaner market, and the fact that much of its competition comes from Chinese players. 

The CMA and EU don’t always see eye-to-eye on antitrust laws. For example, the CMA previously blocked Microsoft’s $69.7 billion acquisition of Activision, while the European Commission cleared the deal as long as Microsoft agreed to license deals with rival streaming platforms. 

Gaining CMA approval

The CMA’s investigation was centered around three concerns about the acquisition. The first was that Amazon’s acquisition of iRobot would result in a significant loss of competition in the robot vacuum cleaner market, as Amazon could potentially compete as a supplier. However, because of iRobot’s modest market position in the UK, and its significant rivals that already exist, the CMA decided that the potential loss of competition wouldn’t be substantial enough to greatly impact market outcomes. 

The CMA’s next concern was that Amazon could use its online store to disadvantage iRobot’s rivals after the merger. During its investigation, the CMA found that while this would be possible, Amazon doesn’t have much of an incentive to throttle its robot vacuum competition. This is because of how small the robot vacuum cleaner market is in the UK and the fact that it is not likely to significantly grow in the future. This means Amazon would likely lose revenue from sales commissions and reduced advertising if it tried to hinder its competition.

Finally, the CMA was concerned that robot vacuum cleaners could be an important aspect of “smart home” platforms, like Amazon’s Alexa, and so Amazon’s smart home rivals could be disadvantaged because of the merger. The CMA also found this likely wouldn’t be an issue because robot vacuum cleaners, and the data they gather, are typically not important inputs for smart home devices. Additionally, there are other robot vacuum makers whose vacuums have similar capabilities’ to iRobot’s Roombas, so those other vacuum makers could be part of a rival smart home system. 

“More people are choosing to use ‘smart’ tech in their homes – whether that’s listening to the radio through a smart speaker, answering the door using a video doorbell, or keeping floors clean with robot vacuum cleaners,” Colin Raftery, senior director of mergers at the CMA, said. That’s why it’s important to ensure tech firms that already benefit from powerful positions aren’t able to use those positions to undermine competitors at the expense of UK consumers and businesses. Here, after a thorough investigation, we’re satisfied that the deal would have no impact on competition in the UK.”

While Amazon has approval for the acquisition in the UK, its investigations with the FTC and EU are ongoing, and it could be months before regulators reach a conclusion on whether the deal can move forward.

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In this newly created role, Washington will leverage his extensive experience leading technology development and execution across industries, including robotics, consumer products, automotive and space. He will also become a member of the Medtronic Executive Committee.

“This new leadership role will help Medtronic to harness the innovative spirit of our founders and ensure we are capitalizing on our scientific and technological knowledge to invent, innovate and disrupt the healthcare technology market of the future,” Chair and CEO Geoff Martha said in a news release. “Dr. Washington will help Medtronic expand use of our technology platforms across our portfolio – including robotics, sensors, implantables and AI – improving our returns on investments in innovation and expanding our technological competitive advantage to drive durable growth.”

Washington most recently served as VP and GM of consumer robotics at Amazon. The company in late 2021 introduced its Astro home robot, which is essentially an Echo Show 10 on wheels. Amazon said Astro can be used for a variety of things, including home monitoring, videoconferencing with family and friends, entertaining children, and all of the same features we’ve come to know and love from Alexa devices – listen to music, check your schedule, etc.

Astro can map your home and go to specific rooms on command. The voice-controllable robot can recognize faces, deliver items to specific people, after a human puts the item in the storage bin, and use third-party accessories to, for example, record blood pressure. It can detect the sound of a smoke alarm, carbon monoxide detector or breaking glass. If you have a Ring account, Astro can send you notifications if it notices something unusual.

Washington has also been the chief technology officer at Ford Motor Co., where he oversaw development of the company’s technology strategy, including next-generation vehicle architectures, controls and automated systems. Washington also spent seven years at Lockheed Martin in numerous leadership roles, including chief technology officer, chief privacy officer and VP of the advanced technology center in Lockheed Martin Space Systems Company.

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The Vorwek Group announced in a press release late last week that it will be shutting down Neato Robotics, a robotic vacuum manufacturer that has been part of Vorwek Group since 2017. 

“Neato has brought valuable experience and innovations to Vorwerk’s product development in the field of cleaning robots over the past few years. However, Neato’s independent sales in e-commerce and brick-and-mortar retail with a focus on the USA has not been able to be successfully developed, so the company has not achieved the economic goals it has set itself for several years,” the company said in the release.

“As part of the consolidation, Neato will now be closed despite restructuring efforts, affecting 98 employees worldwide. Vorwerk will take over a 14-strong team in Milan to ensure the security of the infrastructure for Neato’s cloud services for at least five years. The availability of spare and consumable parts and service for necessary repairs are also guaranteed for at least five years.”

Vorwek Group decided to close Neato after “lots of restructuring efforts,” according to reporting from TechHive. 

Neato Robotics was founded in 2005 by three Stanford alums and quickly became one of iRobot’s top competitors. The California-based company has been able to set itself apart because of its unique “D” shaped design that allows the robots to more precisely clean corners and other tricky areas, as well as by integrating innovative features into its robots. For example, in 2011, the company was early to introduce Wi-Fi connectivity to its devices. 

The company’s latest robot, the Neato D10, was able to pick up 60% more dirt than its Neato D5, and includes a True HEPA filter that captures up to 99.97% of allergens and fine dust particles. It can clean up to 2,700 sq. feet on a single charge, making it capable of cleaning larger homes. 

The decision to close Neato is part of a 2025 restructuring strategy for Vorwerk, which will focus more on selling vacuums and other robots in its Germany office. 

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iRobot’s Roomba Combo j7+ at its docking station. iRobot’s vacuum cleaners can autonomously charge themselves. | Source: iRobot

Administrative Law Judge Maryann McNamara issues an initial determination in iRobot’s patent infringement lawsuit against SharkNinja. If the full commission, which is expected to make a judgment by February 2023, upholds Judge McNamara’s decision, imports of SharkNinja’s infringing products could be banned. 

iRobot’s lawsuit involved four of its patents, and Judge McNamara found that SharkNinja infringed upon two of them, U.S. Patent No. 9,884,423 (the ‘423 patent) and U.S. Patent No. 10,813,517 (the ‘517 patent). The court found that SharkNinja did not violate the other two patents iRobot included in its initial filing. 

The ‘423 patent involves it autonomous robot auto-docking and energy management systems and methods. iRobot’s ‘517 patent is for its navigational control system for robotic devices. The company filed a complaint alleging SharkNinja infringed upon its patents with the International Trade Commission (ITC) in January 2021. 

“This determination validates the strength of iRobot’s patent portfolio and the hard work of our engineers over the better part of the last two decades,” Colin Angle, chairman and CEO of iRobot, said. “We are glad to see the ITC is holding SharkNinja accountable for its misappropriation of iRobot intellectual property. iRobot thanks ALJ McNamara and the ITC for their hard work in this case.”

Since the complaint was filed, SharkNinja has redesigned its products to avoid any infringement. The initial determination found that the company’s redesigned products did not infringe upon any of the disputed iRobot patents. The company has begun manufacturing and selling the redesigned products, and plans to replace all of its current products with the redesigned ones if the commission upholds its ruling. 

iRobot’s complaint is the second time the company has asserted a lawsuit against SharkNinja. In 2019, iRobot filed a motion for a preliminary injunction in the District of Massachusetts to stop sales and distribution of the Shark IQ Robot. That case is on hold for related proceedings at the U.S. Patent and Trademark Office. 

In August, Amazon announced that it would be acquiring iRobot for $1.7 billion, expanding the company’s already extensive robotics ecosystem. Amazon will acquire iRobot for $61 per share in an all-cash transaction, including iRobot’s net debt. Completion of the transaction is subject to customary closing conditions. On completion, Colin Angle will remain as CEO of iRobot.

The FTC has started an antitrust investigation into Amazon’s plans to acquire iRobot. The FTC’s investigation will reportedly focus on whether the data provided by iRobot’s Roomba robot vacuum gives Amazon an unfair advantage in the retail industry. The investigation will also reportedly look at how the line of robot vacuums would fit in with Amazon’s existing smart home products, like Ring and Alexa.

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An example diagram block for a robot vacuum. | Credit: Invensense, a TDK company

Over the past few years, robot vacuums have advanced immensely. Initial models tended to randomly bump their way around the room, often missing key areas on the floor during their runtime. They also became trapped on thick rugs, and if vacuuming upstairs, came tumbling down with a heavy thud. Their runtime was also relatively short, and you’d often come home hoping for a nice and clean room only to discover that it had run out of juice halfway through.

Since those early days, these cons have turned into pros with the innovative use of sensors and motor controllers in combination with dedicated open-source software and drivers. Here is a look at some of the different sensors used in today’s robot vacuums for improved navigation and cleaning.

Ultrasonic time-of-flight sensors
Ultrasonic time-of-flight (ToF) sensors work in any lighting conditions and can provide millimeter-accurate range measurements independent of the target’s color and optical transparency. The sensor’s wide field-of-view (FoV) enables simultaneous range measurements of multiple objects. In a robot vacuum, they are used to detect if an object, such as a dog or children’s toy, is in its way and whether it needs to deviate its route to avoid a collision.

Short-range ultrasonic ToF sensors
Short-range ultrasonic ToF sensors can be used to determine different floor types. The application uses the average amplitude of a reflected ultrasonic signal to determine if the target surface is hard or soft. If the robot vacuum detects that it has moved from a carpet onto a hardwood floor, it can slow the motors down because they do not need to work as hard compared to carpet use.

The cliff detection feature can enable the robot vacuum to determine when it’s at the top of a set of stairs to prevent a fall.

VSLAM and LiDAR
Most companies developing high-end robot vacuums use visual simultaneous localization and mapping (VSLAM) or LiDAR technology to build a virtual map of the room. These technologies enable the robot vacuum to move around more efficiently, covering an entire level of a home with multiple rooms. However, if you lift the robot and put it down, it will not know its new location. To find out where it is, the robot must go off in a random direction and, once it detects an object and starts tracing the walls, it can find out where it is relevant to the map.

VSLAM or LiDAR technologies may not be applicable for low-light areas, for example, if the robot vacuum goes under a table or couch, where it is unable to read the map.

An example of the mapping capabilities of iRobot’s j7 robot vacuum. | Credit: iRobot

Inertial Measurement Units (IMU)
IMUs take the roll, pitch, and yaw of movements of the robot vacuum in the real world both from a linear and rotational perspective. When the robot vacuum is doing circles or moving in a straight line, it knows where it is supposed to go and how it is moving. There may be a slight error between where it should be and where it is, and the IMU can hold that position in a very accurate way.

Based on rotational and linear movement, plus the mapping of the room, the robot vacuum can determine that it is not going over the same areas twice and can pick up where it left off if the battery dies. And, if someone picks up the robot vacuum and places it somewhere else or turns it around, it can detect what is happening and know where it is in real space. The IMU is essential to making robot vacuums efficient.

For robot vacuums that do not use VSLAM or LiDAR mapping technology, their position and navigation can be determined using dead reckoning by combining measurements from the wheel’s rotations with the inertial measurements from the IMU and object detection from the ToF sensors.

Smart speaker microphones
As developers of robot vacuums continue to implement artificial intelligence (AI) with the ability to use voice assistants, microphones become an essential sensor technology. Take beamforming, for example. Beamforming is a type of radio frequency (RF) management technique that focuses the noise signal towards the microphone in combination with AI for tweaking. At the moment, the noise of the motors and the turning brushes on the robot vacuum are a bit loud. However, as microphone technology progresses and motors and brushes become quieter, coupled with beamforming, microphones will be able to determine the user’s voice in the not-too-distant future.

Algorithms can also be trained to disregard certain noises and listen specifically for the voice of the user. Ostensibly, the user wants to call for the vacuum cleaner to clear up something or tell it to go home without going through an app or voice assistant product. You want that to happen in real time inside the host processor of the robot vacuum. Alternatively, if the microphone notices that something is being spoken, it may be possible for the robot vacuum to stop all of its motors to listen to the command.

Embedded motor controllers
The embedded motor controllers are turning the gears to ensure the wheels are moving the robot vacuum in the correct direction with accuracy that can tell when the wheel is actually turned 90 degrees as opposed to 88 degrees. Without this high level of accuracy, the robot vacuum will be way off track after a certain amount of time. The embedded motor controller can be flexible whether you use sensors or not, making the robot vacuum scalable.

Pressure sensors
The level of dust inside the dust box is estimated by monitoring the flow of air through the dustbin with a pressure sensor. Compared to the air pressure when the dustbin is empty, the air pressure inside the dustbin begins to drop when the airflow begins to stagnate due to an increase in suction dust or clogging of the filter. However, for more accurate detection, it is recommended to detect it as a differential pressure that uses a similar pressure sensor to measure the outside air pressure.

A lot of the high-end bases have the capability to suck out the contents of the dust box automatically. The robot vacuum can then return to base, empty its contents, return to its last known position and continue cleaning.

Auto-recharging
To determine the battery’s state of charge (SoC), you need accurate current and voltage measurements. The coulomb counters and NTC thermistors in the battery pack provide this information.

When the battery reaches an arbitrary SoC level, the battery communicates an instruction for the robot vacuum to stop cleaning and return to the base for a recharge. When fully charged, the robot vacuum goes back to its last known position and continues cleaning. Regardless of the size of the room, in theory, with multiple chargers and multiple abilities to empty the dustbin, the robot vacuum can cover the entire floor space.

Thermistors
Thermistors, which are a type of temperature sensor, can be used to monitor the running temperature of the MCU or MPU. They can also be used to monitor the temperatures of the motors and brush gears. If they are running way too hot, the robot vacuum is instructed to take a break and perhaps run a few system diagnostics to find out what is causing the problem. Also, items caught in the brushes, like an elastic band or excess hair, can make the motors overcompensate and overheat.

Robot vacuum developers should understand what the motors are supposed to sound like at a certain threshold of frequency. It is possible to use a microphone to detect whether the motors are running abnormally, thereby detecting early stages of motor degradation. Again, by using diagnostics, the abnormal noise from the bushes could indicate that they have picked.

Conclusion
The retail price of a robot vacuum goes hand in hand with functionality and accuracy; some of the high-end models can be as much as $1,100. You can get a robot vacuum for closer to $200, but you will be sacrificing some of the bells and whistles. It all depends on the value the robot vacuum developer wants to create and the cost structure that works best for the user.

As component costs come down, it seems likely that more mid-tier robot vacuums will enter the market. Technologies like ToF sensors, pressure sensors, IMUs and motor controllers, along with improvements in battery efficiency, will drive this growth.

About the Author
For seven years, Peter Hartwell has been the chief technology officer at Invensense, a TDK company. He holds more than 40 patents and his operation oversees 600 engineers who have developed a broad range of technologies and sensors for drones, automotive, industrial and, more broadly, IoT. Hartwell has 25-plus years of experience commercializing silicon MEMS products, working on advanced sensors and actuators, and specializes in MEMS testing techniques.

Prior to joining InvenSense, he spent four years as an architect of sensing hardware at Apple where he built and led a team responsible for the integration of accelerometer, gyroscope, magnetometer, pressure, proximity, and ambient light sensors across the entire product line. Hartwell holds a B.S. in Materials Science from the University of Michigan and a Ph.D. in Electrical Engineering from Cornell University.

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The Federal Trade Commission (FTC) has officially started an antitrust investigation into Amazon’s plans to acquire robot vacuum maker iRobot for $1.7 billion. Politico reports the FTC is investigating a number of potential issues.

The FTC’s investigation will reportedly focus on whether the data provided by iRobot’s Roomba robot vacuum gives Amazon an unfair advantage in the retail industry. For example, Amazon could have an advantage with a consumer looking to buy a couch by using detailed home maps generated by iRobot to suggest particular items.

The investigation will also reportedly look at how the line of robot vacuums would fit in with Amazon’s existing smart home products, like Ring and Alexa.

In a recent podcast episode of The Robot Report Podcast, we discussed many of these concerns with the acquisition, including data privacy, and how Amazon might use shopper information to influence buyer behavior, or even influence the product roadmap for iRobot, based on purchase history of competitive solutions. 

Amazon also sells Astro, a high-end robot that can deliver drinks and keep an eye on your house, but it hasn’t caught on with customers. Astro, which is available by invitation only, does not have a vacuum and is little more than Alexa with wheels.

This deal is important to the future of iRobot, but a lengthy FTC investigation will drag out the deal’s closing date. Whatever potential future product concepts might be possible with the combination of Amazon and iRobot will have to wait until this investigation is completed.

The deal could also be stopped, which would be bad news for both iRobot and Amazon. iRobot has been at the forefront of consumer robotics for years. With additional funding and room for creativity, the company could soon introduce intriguing new products.

According to Politico, Amazon reiterated its past statements about the iRobot deal, saying it will employ all necessary safeguards for consumer data. iRobot CEO Colin Angle last week wrote about the company’s approach to customer data. He wrote that “iRobot does not – and will not – sell customers’ personal information. Our customers control the personal information they provide us, and we use that information to improve robot performance and the customer’s ability to directly control a mission.”

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iRobot’s Roomba j7 robot vacuum has a front-facing camera. | Credit: iRobot

iRobot has over the years discussed its approach to protecting customer data collected by its Roomba robot vacuums. And it’s doing so again as the topic has resurfaced thanks to Amazon’s pending $1.7 billion acquisition of iRobot.

There haven’t been too many consumer robotics companies to write home about in recent memory. And, unfortunately, these privacy concerns have overshadowed the major success story that is iRobot. The newest Roombas use cameras to navigate around and create maps of their environments. According to iRobot, customers can opt-out of having its robots store the layout of their homes.

Nevertheless, data privacy advocates worry that Roombas give Amazon more eyes into our homes and a deeper understanding of products we might be more likely to purchase. Amazon has denied this, saying “we do not use home maps for targeted advertising and have no plans to do so.”

In a blog posted on LinkedIn this morning, iRobot co-founder and CEO Colin Angle said that “iRobot does not – and will not – sell customers’ personal information. Our customers control the personal information they provide us, and we use that information to improve robot performance and the customer’s ability to directly control a mission.”

If the Amazon acquisition is approved, the e-commerce giant will become iRobot’s owner, not a third party. It doesn’t seem like Amazon would have to pay iRobot for customer data, but we’ll likely never see the legal documents for this acquisition and any fine print about data privacy. Angle said iRobot’s stance on data privacy will not change when the acquisition by Amazon is finalized.

Angle also wrote about how creating maps of your home and identifying objects such as pet waste, cords, shoes and other objects allows the robot vacuums to clean more effectively. “This personalization is directed entirely by the customer and may be modified or deleted at any time.”

iRobot, in recent years, has also built out voice control through integration with Alexa (Amazon), Google Assistant and Siri (Apple). Angle again stressed that voice control capabilities need to be enabled by customers.

“To enable this integration, limited data would be shared with the customer’s preferred voice assistant. This level of data sharing with third parties is enabled only by the customer’s explicit permission, and that will continue to be the case.”

An example of the mapping capabilities of iRobot’s A view of a Roomba j7’s robot vacuum.

With the combination of Roomba, Alexa, Ring doorbells, the Astro robot other smart products, Amazon could have an incredible amount of data about one’s home. So don’t expect privacy concerns associated with Amazon to die down any time soon.

We have reprinted Angle’s post below in its entirety. It was first posted on LinkedIn.

At iRobot, protecting customer data and privacy is of the utmost importance as we explore the path forward for home robotics and the future of the home. For 20 years now, iRobot customers have been welcoming our products into their homes to clean and help them do more. That trust is the foundation of our relationship with our customers, and we work to earn it every day.

iRobot does not – and will not – sell customers’ personal information. Our customers control the personal information they provide us, and we use that information to improve robot performance and the customer’s ability to directly control a mission.

Today, Roomba and Braava robots create maps that allow customers to identify objects within the home – enabling more effective cleaning, and providing customers with valuable information about cleaning performance. The Roomba j7 can see and avoid pet waste, cords, shoes and other objects to ensure it finishes the job without getting stuck or creating a mess. iRobot’s connected home robots use a Smart Map to identify rooms and furniture, allowing customers to personalize their cleaning missions and clean specific rooms or particularly dirty areas of the home, like around the kitchen counter. This personalization is directed entirely by the customer and may be modified or deleted at any time.

The Smart Map and images of objects the robot encounters during cleaning are fully encrypted and sent to the cloud, where they are secure and available for customer viewing via the iRobot Home App. If a customer chooses, they can enable voice control through services like Alexa, Google Assistant or Siri. To enable this integration, limited data would be shared with the customer’s preferred voice assistant. This level of data sharing with third parties is enabled only by the customer’s explicit permission, and that will continue to be the case. Our position is, “Your information belongs to you. If you’re letting us have access to it, we must treat it with the utmost respect.”

Here’s what I can tell you about iRobot’s unwavering commitment to protecting the privacy of our customers:

• We’re always clear about what information we collect and why we collect it, proactively communicating with our customers to ensure transparency.
• We always protect customer data with the highest standards of privacy protection.
• We put customers in control, and if they don’t want their data shared with us, they can change their settings in the iRobot Home App.
• We keep all data secure from start to finish, adding multiple layers of protection around our robots, cloud and app.

Our commitment to privacy will not change once we are acquired by Amazon. Amazon shares the same strong commitment to privacy and has a long history of protecting customer data across all of its businesses. iRobot is positioned to become one of those businesses, and we’re impressed with how Amazon works to earn and maintain customer trust. I’m excited for what lies ahead, and I couldn’t be happier that both organizations share the core value of protecting our customers’ privacy.

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iRobot, maker of the popular Roomba robot vacuum, is laying off 10% of its staff, or about 140 employees. The layoffs are part of a restructuring that iRobot said will save the company up to $10 million in 2022 and between $30-$40 million in 2023.

iRobot announced the layoffs on August 5, 2022 in its Q2 earnings results. This was the same day iRobot announced it was being acquired by Amazon for $1.7 billion. However, iRobot said the two events are not related. iRobot told The Robot Report Amazon was not involved in its decision to reduce its workforce as the two companies continue to operate independently.

To better align costs with near-term revenue, part of the restructuring includes shifting certain non-core engineering functions to lower-cost regions and increasing use of iRobot’s joint design manufacturing (JDM) partners. iRobot mentioned some other cost-reduction steps it will take, including the reduction of its global facility footprint.

“These actions help support the company’s near-term priorities to drive innovation by executing on its product roadmaps, optimize inventory levels across all major channels, expand DTC sales and position the business for profitable growth in 2023,” iRobot said in its earnings statement. “They also augment other cost-reduction actions that include recalibrating near-term promotional and advertising plans, carefully managing hiring activities, adjusting short-term incentive compensation to align with projected performance and reducing other discretionary spending.”

iRobot’s second-quarter revenue dropped 30% in 2022 due to weak demand and cancellations from retailers in North America and Europe, Middle East and Africa. The company also warned of weaker growth going forward. iRobot blamed that on inflation and the impact of the war in Ukraine. The robot vacuum market has more competition now than ever before, so certainly increased competition is playing a role, too.

iRobot is the latest robotics company to be hit by layoffs. Last week, The Robot Report broke the news about autonomous mobile robot maker Seegrid laying off 90 employees. Perceptive Automata, a Boston-based developer of human behavior understanding AI for autonomous vehicles and robots, recently shut down. According to co-founder and CTO Sam Anthony, Perceptive Automata went “kablooey” after it failed to close Series B funding. In July, a number of companies cut staff, including Argo AI, Nuro, Pudu Robotics, and Starship Technologies. And DoorDash announced it is shutting down Chowbotics just 18 months after acquiring the business.

Last week, Amazon agreed to acquire iRobot for $61 per share in an all-cash transaction, including iRobot’s net debt. Completion of the transaction is subject to customary closing conditions. On completion, Colin Angle will remain as CEO of iRobot. If the deal falls apart, Amazon will have to pay iRobot a $94 million termination fee. Amazon has over the years built quite an impressive robotics ecosystem.

If this deal goes through, it would be Amazon’s fourth most expensive acquisition ever, according to The New York Times. The only bigger acquisitions would be Whole Foods ($13.7 billion in 2017), movie studio MGM ($8.5 billion in 2021) and One Medical, a chain of primary care clinics around the United States, that Amazon agreed to acquire, but hasn’t closed on, just last month for $3.9 billion.

Amazon is a major player in the smart home space, but has struggled for years to gain traction in consumer robotics. In September 2021, Amazon unveiled its first home robot, Astro, which is essentially an Echo Show 10 on wheels. Astro is quite underwhelming. So acquiring iRobot immediately boosts Amazon’s play in consumer robotics. iRobot is the world’s leading developer of cleaning robots, it offers the Root coding robots and has been trying to commercialize robot lawn mowers for nearly two decades.

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Will Astro, Amazon’s underwhelming consumer robot, soon be able to clean floors? Probably not. But Amazon today upped the ante in its consumer robotics game by announcing it’s acquiring iRobot, maker of the popular Roomba robot vacuum series, for about $1.7 billion.

Amazon will acquire iRobot for $61 per share in an all-cash transaction, including iRobot’s net debt. Completion of the transaction is subject to customary closing conditions. On completion, Colin Angle will remain as CEO of iRobot.

If the deal falls apart, Reuters reports that Amazon will have to pay iRobot a $94 million termination fee.

“We know that saving time matters, and chores take precious time that can be better spent doing something that customers love,” said Dave Limp, SVP of Amazon Devices. “Over many years, the iRobot team has proven its ability to reinvent how people clean with products that are incredibly practical and inventive—from cleaning when and where customers want while avoiding common obstacles in the home, to automatically emptying the collection bin. Customers love iRobot products—and I’m excited to work with the iRobot team to invent in ways that make customers’ lives easier and more enjoyable.”

“Since we started iRobot, our team has been on a mission to create innovative, practical products that make customers’ lives easier, leading to inventions like the Roomba and iRobot OS,” said Colin Angle, chairman and CEO of iRobot. “Amazon shares our passion for building thoughtful innovations that empower people to do more at home, and I cannot think of a better place for our team to continue our mission. I’m hugely excited to be a part of Amazon and to see what we can build together for customers in the years ahead.”

iRobot has pitched itself as a player in the smart home realm for a number of years now. So its robot vacuums and mops, along with its Genius Home Intelligence software, could be a nice addition to Amazon’s smart home portfolio. But it has been a challenging time for iRobot.

The relationship between Amazon and iRobot goes back years, too. In July 2005 before iRobot went public, it listed Explore Holdings LLC as an investor and named Elizabeth Korrell as its manager. Explore Holdings was another name for Bezos Expeditions, Jeff Bezos’ personal investment firm at the time, and Elizabeth Korrell was an attorney for Bezos. Beyond that, iRobot uses Amazon Web Services (AWS) and developed voice integration between Alexa and the Roomba.

Big bet on consumer robotics

“It’s great to see a very large company like Amazon make a big bet on consumer robotics,” Helen Greiner, who co-founded iRobot in 1990 with Angle and Rodney Brooks, told The Robot Report. “Amazon just invested in a practical, single-purpose robot that really gets the job done.”

Greiner is now CEO of Tertill, a Massachusetts-based robotics startup developing a weeding robot for vegetable and flower gardens. The robot has often drawn comparisons to the Roomba due to its consumer application and the fact that it was co-created by Joe Jones, who developed the initial proof-of-concept for what became the Roomba.

“Some of the best times of my life were spent at iRobot making the Roomba, getting people like Bezos interested in robotics, putting stuff out into the world and making a difference for people,” Greiner said. “That’s what we did at iRobot and now that’s what we’re doing at Tertill.”

iRobot’s second-quarter revenue fell 30% due to weak demand and cancellations from retailers in North America and Europe, Middle East and Africa. The company also warned of weaker growth going forward. iRobot blamed that on inflation and the impact of the war in Ukraine, but certainly increased competition in the robotic cleaning space is playing a role, too.

The need to diversify its revenue streams is partially why iRobot launched a handheld vacuum in early 2021 and then spent $72 million in late 2021 to acquire Aeris Cleantec AG, a Switzerland-based developer of air purifiers. At the time of the Aeris acquisition, Angle said iRobot was optimistic that “air purification will be a $150 million in annual revenue product category for iRobot within the next several years while also helping improve the long-term profit profile of our company.”

iRobot also acquired Root, an educational robotics company, in 2019. iRobot has also had a robot lawnmower in the works for years, but it hasn’t reached the market. iRobot delayed its robot lawnmower in April 2020, blaming the COVID-19 pandemic, and hasn’t really talked about the product since.

Amazon buys another robotics company

Amazon has now acquired at least five robotics companies since 2012. That list includes:

• Kiva Systems in 2012 for $775 million; Kiva Systems has evolved into Amazon Robotics
• Last-mile delivery robot maker Dispatch in 2017 for an undisclosed amount; the Dispatch team was integrated into Amazon’s Scout operation
• Canvas Technology in 2019 for an undisclosed amount
• Zoox for more than $1 billion in 2020
• iRobot for $1.7 billion in 2022

And while this technically isn’t an Amazon acquisition, Blue Origin, Bezos’ sub-orbital space company, acquired Honeybee Robotics for an undisclosed amount

According to Reuters, Amazon has cash and cash-equivalents of over $37 billion as of the second quarter. So there’s plenty of money for Amazon to continue its acquisition spree of robotics companies. If this deal goes through, it would be Amazon’s fourth most-expensive acquisition ever, according to The New York Times. The only bigger acquisitions would be Whole Foods ($13.7 billion in 2017), movie studio MGM ($8.5 billion in 2021) and One Medical, a chain of primary care clinics around the United States, that Amazon agreed to acquire, but hasn’t closed on, just last month for $3.9 billion.

Amazon’s acquisition would also mark the end of iRobot’s 32-year independence. It initially focused on military robots, including the PackBot. iRobot sold its defense division in 2016. The Roomba was first introduced in 2002, and iRobot began trading on the NASDAQ in November 2005. iRobot also acquired Evolution Robotics, developer of the Mint floor mopping robot in 2012.

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