July 25 (Reuters) - Amazon.com has slashed the price it will pay for iRobot by about 15% to around $1.42 billion after the maker of Roomba vacuum cleaners incurred fresh debt, the companies said on Tuesday.
Under the amended deal, Amazon will pay $51.75 in cash for each share of iRobot, compared with the original price of $61.00.
IRobot shares sank more than 10% on the news to $42.50, on course for their worst day since February last year, before the deal was announced. Amazon was trading 0.3% higher.
The deal price change will be largely offset by the planned increase in iRobot's net debt after it entered a $200 million financing facility to fund its operations, the companies said.
"We've reached an amended agreement with Amazon that reflects the incurrence of iRobot's new debt," said Colin Angle, chairman and CEO of iRobot.
Originally unveiled in August last year, the deal marked the latest effort by Amazon, the world's largest online retailer, to expand its stable of smart home devices.
But the buyout has faced antitrust scrutiny in Europe on worries that it may reduce competition and strengthen Amazon's position as an online marketplace provider. The European Commission has opened a full-scale investigation into the deal and will decide by Dec. 13 whether to clear or block it.
Amazon and iRobot said on Tuesday they were working with the relevant regulators in their review of the merger. The UK's antitrust regulator had cleared the deal in June.
Reporting by Aditya Soni; Editing by Shounak Dasgupta
Source: Reuters