"In recent years, it has faced competition from cheaper Chinese rivals, including Picea, putting pressure on sales and forcing iRobot to reduce headcount. A management shake-up in early 2024 saw the departure of its co-founder as chief executive. Amazon proposed buying the company in 2023, seeing synergy with its Alexa-powered smart speakers and Ring doorbells. EU regulators, however, pushed back on the deal, raising concerns it would lead to reduced visibility for rival vacuum cleaner brands on Amazon's website."
"Amazon and iRobot terminated the deal little more than a month after Adobe's $10 billion purchase of design software maker Figma was abandoned amid heightened US antitrust scrutiny under Joe Biden's administration. Although iRobot received $94 million in compensation for the termination of its deal with Amazon, a significant portion was used to pay advisory fees and repay part of a $200 million loan from private equity group Carlyle. Picea's Hong Kong subsidiary acquired the remaining $191 million of debt from Carlyle last month."
"At the time, iRobot already owed Picea $161.5 million for manufacturing services, nearly $91 million of which was overdue. Alvarez & Marsal is serving as iRobot's investment banker and financial adviser. The company is receiving legal advice from Paul, Weiss, Rifkind, Wharton & Garrison."
iRobot has faced mounting competition from cheaper Chinese rivals, notably Picea, which pressured sales and led to headcount reductions. A management shake-up in early 2024 resulted in the departure of the co-founder as chief executive. Amazon proposed a 2023 acquisition to integrate iRobot with Alexa and Ring, but EU regulators raised competition concerns and the deal was terminated. iRobot received $94 million in termination compensation, much of which covered advisory fees and repayment of part of a $200 million Carlyle loan. Picea’s Hong Kong subsidiary then acquired $191 million of Carlyle-held debt while iRobot owed Picea $161.5 million for manufacturing services, with nearly $91 million overdue. Alvarez & Marsal and Paul, Weiss are advising iRobot.
Read at Ars Technica
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