The company most known for its Roomba robot vacuum, iRobot Corporation (NASDAQ:IRBT), will be acquired by Amazon.com, Inc (NASDAQ:AMZN) for $1.7 billion as the largest e-commerce corporation in the world expands its selection of personal and home electronics items.
Amazon announced that it will pay iRobot stockholders $61 per share in an all-cash transaction that includes iRobot's net debt, representing a 22% premium over the company's Thursday closing price. On Friday, iRobot stock opened at $59.72.
Related: Amazon Braces To Snap Up iRobot At 22% Premium In Cash
The e-commerce giant acquired its first company in 1998, just four years after opening its virtual doors. It purchased Bookpages, a U.K.-based online book store for $55 million. Since then, including iRobot, Amazon has acquired a total of 113 companies.
While the most recent acquisition adds to the tech conglomerate’s lineup of home goods, such as its Ring doorbell, where does the value of this deal stack up against the M&A tear that Amazon has been on for years? Let’s take a look.
10. PillPack – $753 million, acquisition number 91
Amazon entered the prescription medicine business to compete with drugstore chains, drug wholesalers, and pharmacy benefit managers in June 2018 when it purchased online pharmacy company PillPack for $800 million. As an Amazon subsidiary, PillPack continues to be run independently, and its original CEO and founder are still in place.
9. Kiva Systems – $775 million, acquisition number 48
Amazon purchased robotics company Kiva Systems, now known as Amazon Robotics, in March 2012 for $775 million in an all-cash deal. Amazon Robotics produces a new breed of mobile robots that can transport shelves of goods from employee to employee while reading barcodes on the ground for directions.
8. Ring – $839 million, acquisition number 90
With the $839 million purchase of home security company Ring in February 2018, Amazon gained a competitive edge in smart-home technology. This acquisition complemented Amazon Key, its existing in-home delivery service, and gave Alexa a new platform to flourish.
7. Twitch Interactive – $970 million, acquisition number 58
One of Amazon's largest purchases to that point was the $970 million all-cash purchase of the video game broadcasting service Twitch in August 2014. Following Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) withdrawal from a deal to buy Twitch due to antitrust concerns, Amazon purchased Twitch. Amazon folded Twitch into its company in order to help the business compete with other streaming video services like YouTube, owned by Alphabet, and Netflix Inc. (NASDAQ:NFLX).
6. Zoox – $1.2 billion, acquisition number 102
Amazon purchased autonomous ride-hailing startup Zoox in June 2020 for $1.2 billion in order to assist the startup in realizing its vision of autonomous ride-hailing, but unmistakably with an eye toward using its own logistics operations for package delivery.
5. Zappos – $1.2 billion, acquisition number 35
In July 2009, Amazon paid $1.2 billion for the shoe e-commerce website Zappos in an all-stock deal, with the agreement that Zappos would maintain its independence.
4. iRobot – $1.7 billion, acquisition number 113
In its latest acquisition, completed on Aug. 5, Amazon agreed to purchase the Roomba maker for $1.7 billion in an all-cash deal, including iRobot’s net debt.
3. One Medical – $3.9 billion, acquisition number 112
On July 21, Amazon announced that it reached an agreement with One Medical to buy the healthcare provider for $18 per share in an all-cash deal estimated to be worth $3.9 billion. With 200 facilities and 767,000 patients nationwide, One Medical is a membership-based primary care practice that also offers 24/7 access to virtual care.
2. Metro-Goldwyn-Mayer (MGM) – $8.45 billion, acquisition number 106
In May 2021, Amazon announced that it reached an agreement to pay $8.45 billion to acquire the Hollywood film company, MGM Studios. This agreement was reached as part of Amazon's strategy to establish itself as a major player in the entertainment industry, enhancing Amazon Studios and providing access to a vast library of content, including some of the most recognizable films ever produced, for the company's Prime Video streaming service.
1. Whole Foods Market – $13.7 billion, acquisition number 80
With the $13.7 billion all-cash purchase of organic food retailer Whole Foods Market in June 2017, Amazon made a significant entry into traditional retailing. Whole Foods Market is now Amazon's largest subsidiary. Amazon set out to learn the supermarket industry in order to move sales online and convert customers. Amazon also owns the chain of Amazon Fresh grocery stores, the first of which debuted in 2020.
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