SoftBank said to take stake in Roomba maker in buildout

[LONDON] SoftBank Group Corp has taken a stake in Roomba vacuum-cleaner maker IRobot Corp, people familiar with the matter said, as the Japanese company builds its holdings in robotics firms.

SoftBank has built a less than 5 per cent stake in IRobot, below the amount that would require a regulatory disclosure in the US, the people said, asking not to be identified because the purchase was private. The Bedford, Massachusetts-based technology company has a market value of US$2.4 billion.

Shares in IRobot rose 22 per cent in late trading in New York. Representatives for SoftBank and IRobot declined to comment.

SoftBank, which has more than US$93 billion in commitments so far for its technology-focused Vision Fund, has been snapping up robotics firms this year. In June, SoftBank agreed to buy Boston Dynamics from Alphabet Inc. for an undisclosed sum. Earlier this month, the Vision Fund led a US$114 million investment in San Diego-based artificial-intelligence firm Brain Corp, which develops self-driving technology for robots.

It's unclear whether the IRobot investment will be held by SoftBank or the Vision Fund.

IRobot was founded about 27 years ago by Massachusetts Institute of Technology robotics engineers who pioneered the market for the self-propelled devices that vacuum and wash floors. Last year the company sold its robotic mine-detection and bomb-disposal business to focus on its consumer products, which accounted for 99 per cent of 2016 revenue.

The Vision Fund, which is targeting US$100 billion in total commitments, is getting contributions from Saudi Arabia's Public Investment Fund, Apple Inc and other large, institutional backers and tech companies.

IRobot also reported second quarter financial results after the close of trading in New York Tuesday. Revenue rose 23 per cent to US$183.1 million, exceeding analyst estimates, while net income climbed to US$7.9 million.

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