iRobot recently declared that it has inked a definitive agreement to purchase Pasadena, California-based privately-held Evolution Robotics (ER) that develops Mint and Mint Plus automatic floor cleaning robots.
The board of directors and stockholders of ER and the board of directors of iRobot have approved the acquisition and the definitive agreement.
Scheduled for completion in the Q4 of 2012, the acquisition will support the integration of engineering capability, intellectual property, and new products to expand iRobot’s global portfolio of practical robotics solutions, thereby augmenting the company’s technology leadership. The acquisition of ER by iRobot will cost $74 M under customary purchase price adjustments. The cash reserves of iRobot will support the acquisition.
In the year 2001, ER’s technology evolved into a technology company incubator. Mint was launched by ER in 2010. Designed for hard surface floors, this automatic floor cleaning robot, Mint, revolutionizes the cleaning practices than iRobot’s existing products. By employing cleaning cloths like Swiffer brand Dry and Wet Cloths etc, Mint dusts and damp mops hard surface floors, automatically. With the 2011 launch of an upgraded version, Mint Plus broadened the company’s portfolio. Available on ER’s website, both products can be accessed from select U.S. retailers.
Mint offers a complementary dry/wet floor cleaning solution to iRobot for effective maintenance of hard surfaces. Following first product introduction in 2010, the company has gained positive customer experience that further led to a strong revenue growth. Lower market entry points supporting customers with hard floors can be achieved using Mint.
With this acquisition, additional revenue of $4-6 M is expected in 2012 and $22-24 M in 2013. iRobot anticipates the acquisition to be dilutive in 2012 and 2013, on a GAAP basis, with possibility for final purchase price accounting determinations. The acquisition will be accretive by Q4 2013, excluding integration costs, non-cash charges, and one-time charges.