Amazon Acquires iRobot
Last week, Amazon agreed to buy iRobot, the maker of the popular Roomba robotic vacuum for $1.7B, the two companies announced. The addition of Roomba, the best known robotic vacuum on the market, will add to Amazon’s burgeoning presence in robotics, joining the recently released Astro companion robot. The move should also deepen Alexa’s presence in consumer households, adding a new device and likely some new capabilities for the digital assistant.
The NPD Take:
- Amazon is capitalizing on the nascent robotics market by acquiring one of the most common consumer robots. By adding Roomba (and other iRobot products) to its stable of devices, Amazon is broadening its device portfolio while also integrating Alexa into new products and services.
- The acquisition is also a competitive move – Amazon now has two consumer robot products while its main competitors lack any meaningful presence.
Feit Electric Acquires LIFX
Last week, smart lighting brand Feit Electric announced that it would acquire competitor LIFX. Under the acquisition, Feit Electric will offer a suite of LIFX products and plans to expand the product portofilo. Feit Electric will also support the LIFX app and cloud platform while maintaining a separate Feit Electric smart platform and app. No disruptions are expected to either platform and Feit plans to retain the LIFX brand.
The NPD Take:
- The smart lighting market grew crowded with new brands and products after stellar sales in 2021. Feit’s acquisition of LIFX ought to help the company compete for market share in this tightening market.
- For LIFX, which has seen sales fall -28% year to date thru June 2022, the acquisition could provide the brand new partners and retail customers as it navigates a slower sales year. Feit’s sales have increased +5% YTD while the total market declined -9% - adding LIFX will help augment the company’s product assortment and brand presence as it seeks to gain increased market share.