BEDFORD, Mass., Nov. 21, 2016 /PRNewswire/ — iRobot Corp. (NASDAQ: IRBT), a
leader in consumer home robotics products, today announced that it has signed
a definitive agreement to acquire the iRobot-related distribution business of
privately-held Sales On Demand Corporation (SODC) based in Tokyo, Japan. The
acquisition is expected to close in April 2017.
The acquisition will better enable iRobot to maintain its leadership position
and accelerate the growth of its business in Japan through direct control of
pre- and post-sales market activities including sales, marketing, branding,
channel relationships and customer service.
SODC has been iRobot’s exclusive distribution partner in Japan since 2004 and
is well respected by top channel partners. The SODC team has been instrumental
in establishing iRobot as the leading consumer robotics brand among Japanese
consumers and maintaining significant market share in an increasingly
Japan is a key strategic country for iRobot, given its status as the largest
consumer robotics market outside of North America. iRobot will appoint a new
president & general manager for Japan who will report directly to iRobot’s COO
Christian Cerda, and assume day-to-day operational responsibility for all
market activities in Japan.
“Forward integration in Japan is a strategic step for iRobot as a leading
global consumer technology company. The Japanese distribution model served us
well in establishing our initial presence and brand in the region, catapulting
iRobot to the market leading position. As the dynamics of the robotic floor
care segment evolve in Japan, we believe iRobot itself is better positioned to
drive increased adoption and continue market leadership in that region. We are
honored to have the SODC distribution team join the iRobot family as we take
the next step on our journey,” said Colin Angle, chairman and CEO of iRobot.
iRobot will acquire the business for a cash amount equal to the book value of
the acquired assets at close, primarily inventory, estimated to be between
$14M-$16M, subject to exchange rates in effect on the date of acquisition. The
acquisition is expected to contribute incremental revenue of approximately
$20-25 million in 2017 and to expand gross margin despite the required
one-time, inventory fair value accounting adjustment. On a GAAP basis, iRobot
expects the acquisition to be between $0.25-0.35 dilutive in 2017, subject to
final purchase price accounting adjustments, one time charges and acquisition
costs. The acquisition will result in incremental revenue, gross margin and
profit in 2018 and beyond. We will provide more information on the acquisition
impact on our financials in conjunction with our earnings call in February.
About iRobot Corp.
iRobot designs and builds robots that empower people to do more. The company’s
home robots help people find smarter ways to clean and accomplish more in
their daily lives. iRobot’s portfolio of solutions features proprietary
technologies for the connected home and advanced concepts in navigation,
mobility and artificial intelligence. For more information about iRobot,
please visit www.irobot.com.