A Closer Look at iRobot's 2 Latest Acquisitions
iRobot (NASDAQ: IRBT), a leader in consumer robotics, has just acquired its largest European distributor, Robopolis. The acquisition, announced in July, closed on Oct. 2 and comes on the heels of iRobot acquiring its Japanese distributor, Sales on Demand Corporation, just six months earlier. Let's dive into the details of these two acquisitions and check out the implications for the company going forward.
Image source: iRobot.
According to iRobot CFO Alison Dean, a unique chain of events set the stage for iRobot's acquisition of Sales on Demand. First, the owner of the company died, which led to the CFO taking over as CEO. At the same time, Japan was experiencing currency fluctuations that challenged the company, and the business started to stall. iRobot wanted to exert more influence over some of the marketing efforts in Japan, and was not very successful in its efforts. In fact, the distributor wanted to cut back on marketing efforts. Eventually, the distributor decided to sell the business, and iRobot was able to acquire the company for approximately $18 million, essentially the net book value of the assets.
Source: Fool.com
