I am not amiliar with mint, but was not psyched to hear the news. I for one was perfectly happy to have cash bulding up and making our aluation look insane. I do think in general it is a good market to be making acquisitions, but I was a bit dissapointed. My gut reaction was that it was a defensive acquisition, but defending what? At a higher level I know the was more to it than that, but like I said it was a gut reaction that I am dissapointed...
I personally like the acquisition. Immediate shelf space on a very differentiated product. In fact, I LOVE my Roombas, but the Scooba just doesnt fit our needs as well as a Mint could in certain parts of the house, so now you have a stronger foothold on an existing customer base. As such, I see little cannibalization on the domestic side. Also, correct me if I'm wrong, I remember on the conference call Colin mentioned ~97% of Mint sales are Domestic, where as nearly 70% of Home Robot Sales at iRobot are International if I recall correctly. If he can push the Mint thru the overseas channel, with the expecation of little cannibalization on the Roomba side for reasons mentioned earlier, this could prove to be a fantastic new growth engine for the Company, and at the very least, a diversifcation of product line and increase in patent portfolio. I am bullish, and I can see what Colin Angle means when he called the Mint acquisition a "Home Run" acquisition for them on the conference call. I'm Bullish...my 2 cents.
This acquisition seems like a very good move for IRobot to me. I don't know why the stock is moving the way it is. They get a couple new complementary products they can also benefit from introducing to the international markets. They also get some nice intellectual property in the form of patents and navigation software. Overall a wonderful use of cash. A lot better then letting it sit in the banks!
I agree. Previously they made their money on vacuum cleaners and military robots-- then the stock got killed on fear of loss of military sales. However IMHO this is a very innovative co. in a growing segment (robotics/automation). I expect more new products for the home, and aquisition will improve products even more. Also, IRBT moving into medical robotics. A good buy here, although it may take a while for expected big upside move. (I can't decide whether to buy more now or wait for a possible short term pullback if overall market tanks-- but I am bullish on IRBT longterm).