Chinese contract manufacturer Picea plans to acquire iRobot.
After 35 years in business, iRobot, popularly known for its home vacuuming robot Roomba, has filed for US Chapter 11 bankruptcy.
Though this is not the end of the story for the Massachusetts-based company, which is set to be wholly acquired by its China-based primary contract manufacturer Shenzhen Picea Robotics and its subsidiary Santrum Hong Kong.
iRobot’s CEO Gary Cohen called the acquisition a “pivotal milestone in securing iRobot’s long-term future.
“The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners,” he said.
iRobot is expected to operate as per usual during and after the bankruptcy process, the company said in a press release yesterday (14 December). The process is expected to complete by February 2026.
Following the acquisition, iRobot will become a private company wholly owned by Picea, with its shares no longer listed in any stock exchange.
Common stock holders of iRobot, which has been publicly listed since 2005, are set to lose their investments in the company.
The Roomba debuted in 2002 to much success in the consumer robot market and quickly became synonymous with home vacuum cleaners.
However, earnings began to decline in the post-Covid era marked by supply chain issues and rising competitors with cheaper products and newer technology.
Meanwhile, other controversies in the late 2010s, including reports of Roomba collecting private data from homes, began marring the company’s reputation.
In 2022, Amazon made an offer to purchase the company, under which it would have acquired the robot vacuum maker for cash consideration.
Although that failed in early 2024 after the two failed to get regulatory approval from the EU. The failed deal also resulted in a few rounds of layoffs at the robot maker.
iRobot received $94m from Amazon as compensation for the failed deal, however, a part of it was used to pay the $200m loan the company received from Carlyle Group as a bridge while the Amazon transaction closed.
Carlyle sold $191m of its loan to iRobot to Shenzen Picea and Santrum Hong Kong earlier this month.
Don’t miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic’s digest of need-to-know sci-tech news.
