"iRobot's efforts to find a buyer have hit a wall, deepening uncertainty about the company's future months after it warned investors of "substantial doubt" about its ability to stay afloat. In a SEC filing last week, the Bedford-based maker of the Roomba vacuum said that its remaining potential buyer backed out after a "lengthy period of exclusive negotiations," stalling a sale process that began in March."
"Despite introducing a new lineup of robot vacuums and mops that hit the market last March, the company canceled its fourth-quarter meeting, citing doubts that it can continue past the end of the fiscal year. The loan deadline that is helping keep the company afloat is coming up fast. In the Monday filing, the company disclosed that it was able to extend its $200 million loan maturation date from an affiliate of The Carlyle Group."
"The company's turmoil began in 2024 when Amazon announced it wouldn't acquire iRobot after facing regulatory scrutiny and opposition from European and U.S. antitrust regulators, who raised concerns over competition issues. During the most recent negotiations, the company said in the filing that the counterparty offered a price per share to pay for buying the company that was "significantly lower than the trading price of our stock over the recent months." Shares of iRobot are down more than 50% this year."
iRobot's search for a buyer stalled when the remaining potential purchaser withdrew after a lengthy period of exclusive negotiations, and the company is not negotiating with other buyers. The company extended a $200 million loan from a Carlyle Group affiliate, moving the maturity date to Dec. 1, providing temporary runway to explore a sale or debt refinancing. Turmoil began after Amazon abandoned its planned acquisition amid European and U.S. antitrust opposition. The company launched new robot vacuum and mop models last March but canceled its fourth-quarter meeting amid doubts about surviving the fiscal year. Shares have dropped over 50% this year.
Read at Boston.com
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