Amazon and iRobot agree on lower price for acquisition
Tippapatt
Amazon (NASDAQ:AMZN) and iRobot (NASDAQ:IRBT) announced that they have agreed to amend the existing terms of their merger agreement to reflect a change to the price per share.
Under the new terms, Amazon (AMZN) will pay $51.75 per share revised in comparison to the old acquisition price of $61.00 per share. At the same time, iRobot (IRBT) has entered into a $200M financing facility to fund its ongoing operations. For Amazon (AMZN), the change in price per share is expected to be largely offset by the planned increase in iRobot's net debt under the new financing facility.
"iRobot is taking on new financing that we believe is sufficient to support our operations in a hyper competitive environment and meet our liquidity needs as well as pay off iRobot's existing debt," said iRobot CEO Colin Angle. "This new financing is the outcome of a thorough process and represents the best terms reasonably obtainable on additional financing to support our operations," he added.
Amazon (AMZN) and iRobot (IRBT) also noted that they are still working cooperatively with the relevant regulators in their review of the merger.
Shares of iRobot (IRBT) fell 8.42% in premarket trading on Tuesday to $42.95. Amazon (AMZN) inched up 0.25%.