Summary by Moomoo AI
On January 28, 2024, iRobot Corporation and Amazon mutually agreed to terminate their merger agreement, initially signed on August 4, 2022. The termination follows an amendment to the original agreement made on July 24, 2023. The decision to terminate was approved by iRobot's Board of Directors and will result in Amazon paying iRobot a termination fee of $94 million within two business days. This fee is the exclusive remedy for iRobot regarding the failed merger. Concurrently, iRobot announced preliminary financial results for the fiscal year ended December 30, 2023, and a restructuring plan that includes reducing its workforce by approximately 350 employees, or 31% of its global workforce. The restructuring is expected to incur charges of $12 million to $13 million. Additionally, Colin Angle stepped down as CEO and chairman of the Board, transitioning to a Senior Advisor role for up to 12 months. Glen D. Weinstein has been appointed as the Interim CEO. The company also disclosed obligations under a Credit Agreement that will be affected by the receipt of the termination fee from Amazon.