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 competitive region.
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.
For iRobot Investors
Certain statements made in this
press release that are not based on historical information are
forward-looking statements which are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. This press release contains express or implied
forward-looking statements relating to iRobot Corporation's
expectations concerning the closing date of iRobot's acquisition of
the SODC distribution business, the growth and success of iRobot's
business in Japanese markets, the anticipated purchase price of
iRobot's acquisition of the SODC distribution business, the
expected impact of such acquisition on iRobot's financial
statements and operations, the timing of future information
regarding the financial impact of the acquisition, iRobot's plans
for the leadership of the acquired business, and the ability of
iRobot to successful integrate the SODC distribution business
following the acquisition. These statements are neither promises
nor guarantees, but are subject to a variety of risks and
uncertainties, many of which are beyond our control, which could
cause actual results to differ materially from those contemplated
in these forward-looking statements. Existing and prospective
investors are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
iRobot undertakes no obligation to update or revise the information
contained in this press release, whether as a result of new
information, future events or circumstances or otherwise. For
additional disclosure regarding these and other risks faced by
iRobot, see the disclosure contained in our public filings with the
Securities and Exchange Commission including, without limitation,
our most recent Annual Report on Form 10-K and our Quarterly Report
on Form 10-Q for the second quarter ended July 2, 2016.
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SOURCE iRobot Corp.