Amazon (NASDAQ:AMZN), in a surprising move, will be shelling out less cash than initially planned to acquire iRobot (NASDAQ:IRBT), as announced by both companies. The e-commerce titan has revised the deal, agreeing to purchase each share of iRobot, the smart vacuum cleaner manufacturer, for $51.75, down from the originally agreed price of $61 per share.
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Furthermore, iRobot announced on Tuesday that they’ve secured a $200 million financing facility to bolster its operations. iRobot’s CEO, Colin Angle, explained the amendment in the agreement with Amazon, stating it was a response to iRobot taking on new financing. Angle expressed confidence in the new arrangement, believing it to be adequate to support their operations in an intensely competitive market, meet their liquidity needs, and settle iRobot’s existing debt.
As a result of today’s news, IRBT stock plunged almost 13% at the time of writing, whereas AMZN stock remained relatively unchanged.
