Amazon.com Inc (NASDAQ:AMZN) will pay about 15% less for iRobot Corporation (NASDAQ:IRBT) after the vacuum cleaner maker entered into a $200 million financing facility to fund its ongoing operations.
The two companies said in a statement that under the amended terms of their merger agreement, Amazon will pay $51.75 per share for iRobot, instead of the $61 previously agreed. That values the deal at about $1.44 billion, down from $1.7 billion.
For Amazon, the companies said the change in price per share is expected to be largely offset by the planned increase in iRobot's net debt under the new financing facility.
"iRobot is taking on new financing that we believe is sufficient to support our operations in a hyper-competitive environment and meet our liquidity needs as well as pay off iRobot's existing debt,” iRobot chairman and CEO Colin Angle said.
“This new financing is the outcome of a thorough process and represents the best terms reasonably obtainable on additional financing to support our operations."
Dave Limp, senior vice president of Amazon Devices commented: ”We are pleased to support iRobot in this way so they can continue inventing and delivering for customers while our proposed acquisition awaits regulatory approval.”
The companies said completion of the transaction remains subject to customary closing conditions, including regulatory approvals and approval of the amended merger agreement by iRobot's stockholders.
Amazon and iRobot are working cooperatively with the relevant regulators in their review of the merger.
In June, the UK competition gave the go-ahead for the merger to proceed.
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