Amazon terminates iRobot deal, vacuum maker to put off 31% of employees

Amazon mentioned on Monday it could not transfer ahead with a deliberate acquisition of vacuum-maker iRobot, with the 2 firms saying in a launch there was “no path to regulatory approval for the deal.”

The vacuum maker additionally announced it could lay off 31% of its workers, round 350 individuals, and that its chair and CEO Colin Angle would step down efficient instantly.

iRobot shares fell 15% on the information.

The destiny of the deal was plunged into uncertainty after The Wall Avenue Journal reported that the European Union wouldn’t supply regulatory approval.

“We’re disappointed that Amazon’s acquisition of iRobot could not proceed,” Amazon senior vice chairman and normal counsel David Zapolsky mentioned in a launch.

iRobot mentioned it could concentrate on margin enhancements, cut back spending on analysis and growth and pause all work on “non-floorcare” merchandise, together with its air purifiers and robotic garden mowers.

Amazon pays iRobot a previously-agreed-upon $94 million breakup payment. The terminated deal would have valued iRobot at roughly $1.7 billion.

The robotic vacuum maker has a market capitalization of underneath $400 million, following Monday’s information and prior reviews that the European Union would transfer to dam the deal.

The European Fee didn’t instantly return CNBC’s request for remark.

That is breaking information. Please verify again for updates.