Amazon cuts iRobot deal price by 15% after Roomba maker incurs new debt

July 25 (Reuters) – Amazon.com ( AMZN.O ) has cut the price it will pay for iRobot ( IRBT.O ) by about 15% to about $1.42 billion after the maker of Roomba vacuum cleaners incurred new debt, the companies said on Tuesday.

Under the amended deal, Amazon will pay $51.75 in cash for each share of iRobot, compared to the original price of $61.00.

IRobot shares fell more than 10% on the news to $42.50, on course for their worst day since last February, before the deal was announced. Amazon traded 0.3 percent higher.

The price change will be largely offset by the planned increase in iRobot’s net debt after it entered into a $200 million financing facility to fund operations, the companies said.

“We have reached an amended agreement with Amazon that reflects the accrual of iRobot’s new debt,” said Colin Angle, chairman and CEO of iRobot.

The deal was originally unveiled last August and marked the latest effort by Amazon, the world’s largest online retailer, to expand its stable of smart home devices.

But the acquisition has faced antitrust scrutiny in Europe over concerns it could reduce competition and strengthen Amazon’s position as an online marketplace provider. The European Commission has opened a full-scale investigation into the agreement and will decide by 13 December whether it should be approved or blocked.

Amazon and iRobot said Tuesday they were working with the relevant regulators in their review of the merger. Britain’s antitrust regulator had approved the deal in June.

Reporting by Aditya Soni; Editing by Shounak Dasgupta

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