Consumer robots company iRobot (NASDAQ:IRBT) plunged in trading after the company, along with tech giant Amazon (AMZN), announced that they had mutually agreed to terminate their acquisition agreement. Amazon announced the acquisition of iRobot in August 2022 for $1.4 billion. The acquisition of iRobot was facing plenty of opposition from antitrust regulators in the European Union (EU). According to the terms of the agreement, Amazon will pay iRobot a termination fee of $94 million.
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Moreover, the company announced a significant restructuring plan to lower its costs and will lay off around 350 of its employees, or 31% of its workforce. The company also announced that Colin Angle, Chairman of the Board of Directors and CEO, will step down from his position, and Glen Weinstein, the company’s EVP and Chief Legal Officer, has been appointed as Interim CEO. Meanwhile, Andrew Miller, an independent director, has been appointed Chairman of the Board.
iRobot also announced its preliminary fourth-quarter results and now anticipates generating FY23 revenue of $891 million, a 25% decline year-over-year, with an adjusted operating loss of around $200 million. The company is expected to announce its fourth-quarter results on February 27.
Is IRBT Stock a Good Buy?
Only two analysts have covered IRBT stock over the past three months and are sidelined about the stock with a Hold consensus rating. The average IRBT price target of $51 implies an upside potential of more than 200% at current levels. IRBT has plunged by more than 60% over the past year.
