iRobot finishes deal to acquire Evolution Robotics

iRobot, the makers of household robotics, has struck a deal with rival Evolution Robotics for its acquisition. Evolution’s addition to iRobot will increase the profitability of the company, especially in the international market.

Both companies make hefty amounts by selling their flagship automatic floor cleaning robots. Mint is the Evolution’s product while Roomba and Scooba are iRobot’s. However, the addition of Evolution to the iRobot brigade will also help in developing more advanced products in the future.

$74 Million will change hands in the acquisition of Evolution acquisition. However, the profitability is expected to bring a break even in the next two years.

Evolution sold 230,000 to 250,000 Mint units since its launch in 2010, said iRobot CEO Jeff Beck. One of the main advantages of the buyout is that both companies use almost the same outlets in the US, which minimizes the cost of shipment. Moreover, Mint is also a big hit in Europe and Asia.

According to the CEO, Evolution Robotics will bring about $4 to $6 Million in the remaining part of this year, whereas next year’s returns are expected to fall somewhere between $22 to $24 Million. The company said Evolution is expected to make sales of around $20 Million this year.

“They have an existing business in North America that is a very neat bolt-on to what we already do,” Jeff Beck, iRobot’s chief operating officer, told IBD. Mint robots are complementary to the products iRobot sells and use many of the same retail outlets, including Bed Bath & Beyond, he says.

“The ability to give robots visual awareness of their surroundings and make intelligent decisions about where to go and what to do is core to unleashing robotics,” Beck said.

Evolution has about 30 patents in visualization and mapping for its Mint product. The acquisition will certainly help iRobot increase profitability by incorporating these additions to future products.

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Posted by Usman Khalid on Sep 20 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.