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Amazon (AMZN) Set to Win EU Approval for iRobot Acquisition
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Amazon (AMZN - Free Report) is leaving no stone unturned to expand its footprint in the booming robotics space. Its robotics trajectory is set to go a level up with the iRobot (IRBT - Free Report) acquisition.
The deal, which was announced back in August 2022 and was subject to various customary conditions and regulatory approvals, is now set to win the European Union’s (“EU”) unconditional antitrust approval.
The approval is expected by Feb 14, 2024.
Initially, Amazon agreed to pay $61 per share in an all-cash transaction for the deal, resulting in an acquisition valued at $1.7 billion. Later, the terms were revised to $51.75 per share after an increase in IRBT’s net debt, valuing the deal at $1.4 billion.
On completion, the underlined deal is going to be marked as Amazon’s fourth largest buyout.
We note that iRobot’s acquisition bodes well for Amazon’s growing efforts toward automation.
With the addition of iRobot’s various cleaning robots, including Roomba, Braava, Mirra and Terra, to its portfolio, Amazon remains well-poised to capitalize on the growth prospects present in the promising cleaning robot market.
As per a report from Grand View Research, the market is expected to witness a CAGR of 22.9% between 2023 and 2030.
According to MarketsandMarkets report, this particular market is expected to reach $25.9 billion by 2027, seeing a CAGR of 21.5% throughout 2022-2027.
Straits Research data indicates that the market is anticipated to hit $49.1 billion by 2030, witnessing a CAGR of 23.6% between 2022 and 2030.
Growing Robotics Initiatives
The iRobot move of Amazon bodes well for its deepening focus on strengthening its robotics efforts.
The company’s unveiling of a fully autonomous mobile robot called Proteus remains noteworthy. Proteus, powered by AMZN’s advanced safety, perception and navigation technology, is capable of working in the same area where humans work and automatically moving around employees.
It does not need to be confined to any restricted area and can carry out seamless and safe interactions between technology and employees. It can also easily detect any human in its proximity and waits until the person moves away.
Amazon’s introduction of a home robot called Astro, which rolls around the house autonomously, remains another positive.
Astro, which marks itself as the first domestic robot, is embedded with cameras, a microphone, motion sensors and a rotating screen with digital eyes. It is equipped with Alexa, which makes it ‘Alexa on wheels.’
Amazon’s acquisition of Canvas Technology, a robotics startup known for its fully autonomous cart system, remains a plus. These cart-type robots are of great use in fulfillment centers as they aid in shifting goods around warehouses.
All these endeavors are expected to boost Amazon's presence in the robotics space.
We believe that Amazon is well-poised to capitalize on the growth prospects present in the global robotics market, which, per a report from Future Market Insights, is anticipated to generate revenues worth $25.2 billion in 2023 and reach $152.9 billion by 2033, seeing a CAGR of 19.8% between 2023 and 2033.
Growing prospects in this promising market are likely to instill investor optimism in the stock, which has been gaining on e-commerce strength, cloud momentum and aggressive strategies to bolster its footprint in various territories that hold growth promises. Amazon has gained 74.7% on a year-to-date basis.
Image: Bigstock
Amazon (AMZN) Set to Win EU Approval for iRobot Acquisition
Amazon (AMZN - Free Report) is leaving no stone unturned to expand its footprint in the booming robotics space. Its robotics trajectory is set to go a level up with the iRobot (IRBT - Free Report) acquisition.
The deal, which was announced back in August 2022 and was subject to various customary conditions and regulatory approvals, is now set to win the European Union’s (“EU”) unconditional antitrust approval.
The approval is expected by Feb 14, 2024.
Initially, Amazon agreed to pay $61 per share in an all-cash transaction for the deal, resulting in an acquisition valued at $1.7 billion. Later, the terms were revised to $51.75 per share after an increase in IRBT’s net debt, valuing the deal at $1.4 billion.
On completion, the underlined deal is going to be marked as Amazon’s fourth largest buyout.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Growth Prospects
We note that iRobot’s acquisition bodes well for Amazon’s growing efforts toward automation.
With the addition of iRobot’s various cleaning robots, including Roomba, Braava, Mirra and Terra, to its portfolio, Amazon remains well-poised to capitalize on the growth prospects present in the promising cleaning robot market.
As per a report from Grand View Research, the market is expected to witness a CAGR of 22.9% between 2023 and 2030.
According to MarketsandMarkets report, this particular market is expected to reach $25.9 billion by 2027, seeing a CAGR of 21.5% throughout 2022-2027.
Straits Research data indicates that the market is anticipated to hit $49.1 billion by 2030, witnessing a CAGR of 23.6% between 2022 and 2030.
Growing Robotics Initiatives
The iRobot move of Amazon bodes well for its deepening focus on strengthening its robotics efforts.
The company’s unveiling of a fully autonomous mobile robot called Proteus remains noteworthy. Proteus, powered by AMZN’s advanced safety, perception and navigation technology, is capable of working in the same area where humans work and automatically moving around employees.
It does not need to be confined to any restricted area and can carry out seamless and safe interactions between technology and employees. It can also easily detect any human in its proximity and waits until the person moves away.
Amazon’s introduction of a home robot called Astro, which rolls around the house autonomously, remains another positive.
Astro, which marks itself as the first domestic robot, is embedded with cameras, a microphone, motion sensors and a rotating screen with digital eyes. It is equipped with Alexa, which makes it ‘Alexa on wheels.’
Amazon’s acquisition of Canvas Technology, a robotics startup known for its fully autonomous cart system, remains a plus. These cart-type robots are of great use in fulfillment centers as they aid in shifting goods around warehouses.
All these endeavors are expected to boost Amazon's presence in the robotics space.
We believe that Amazon is well-poised to capitalize on the growth prospects present in the global robotics market, which, per a report from Future Market Insights, is anticipated to generate revenues worth $25.2 billion in 2023 and reach $152.9 billion by 2033, seeing a CAGR of 19.8% between 2023 and 2033.
Growing prospects in this promising market are likely to instill investor optimism in the stock, which has been gaining on e-commerce strength, cloud momentum and aggressive strategies to bolster its footprint in various territories that hold growth promises. Amazon has gained 74.7% on a year-to-date basis.
Zacks Rank & Other Stocks to Consider
Currently, Amazon carries a Zacks Rank #2 (Buy).
Some better-ranked stocks in the retail-wholesale sector are Booking Holdings (BKNG - Free Report) and Target (TGT - Free Report) . Both the stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Booking Holdings has gained 54.6% on a year-to-date basis. The long-term earnings growth rate for BKNG is currently projected at 21.57%.
Target has lost 9% on a year-to-date basis. The long-term earnings growth rate for TGT is currently projected at 14.18%.