Amazon cuts price for iRobot to $51.75 a share

(Sharecast News) - Amazon said on Tuesday that it will now pay less for Roomba vacuum maker iRobot after it entered into a $200m financing facility. The companies had originally agreed that Amazon would pay $61.00 per share, but this has now been revised down to $51.75.

Amazon 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, which is to fund ongoing operations.

Colin Angle, chairman and chief executive of iRobot, said: "We've reached an amended agreement with Amazon that reflects the incurrence of iRobot's new debt.

"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. This new financing is the outcome of a thorough process and represents the best terms reasonably obtainable on additional financing to support our operations."

At 1540 BST, iRobot shares were down 13% at $40.93.