Shenzhen-based Picea Robotics, iRobot’s lender and main supplier, will acquire all of iRobot’s shares as the Roomba maker enters Chapter 11 protection in Delaware.
The restructuring agreement with Picea follows iRobot’s challenges from intensified competition and marks a transition in which the Chinese company will take control of the Boston-based robot-vacuum pioneer.
The move comes nearly two years after a proposed $1.5 billion acquisition by Amazon fell through amid competition concerns from EU regulators.
Shares in iRobot traded around $4 a share on Friday, far below the $52 per share that Amazon had offered in 2023.
“Today’s announcement marks a pivotal milestone in securing iRobot’s long-term future,” said Gary Cohen, iRobot’s chief executive. “The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers and partners.”
Founded in 1990 by engineers from the Massachusetts Institute of Technology, iRobot helped introduce robotics into the home and has since sold more than 40 million devices, including its Roomba vacuum cleaner.
