Home / Business and Economy / Carlyle's Loan to iRobot Faces Uncertainty After Deal Fails
Carlyle's Loan to iRobot Faces Uncertainty After Deal Fails
2 Dec
Summary
- Carlyle provided a $200 million loan to iRobot in 2023.
- The anticipated acquisition of iRobot by Amazon failed due to regulatory concerns.
- iRobot will repay only $4 million of the loan to Carlyle.
In 2023, Carlyle invested $200 million in iRobot through a senior secured loan, a move predicated on the burgeoning consumer robotics market and an expected acquisition by Amazon. This strategic bet, however, unraveled last year when European Union regulators signaled their intent to block the deal, leading Amazon to withdraw. Consequently, Carlyle received only a portion of its initial investment back.
Following the failed acquisition, iRobot secured a termination payment of $40 million. A substantial part of this payment was earmarked for repaying Carlyle. The company subsequently negotiated an amendment to its loan agreement with Carlyle, agreeing to repay a mere $4 million.
The remainder of the funds from the termination payment has been allocated to support iRobot's current business operations. This financial restructuring highlights the impact of the failed Amazon deal on iRobot's funding and its relationship with key investors like Carlyle.
