iRobot To Sell Its Defense And Security Business To Arlington Capital For $45 Million

Shares of iRobot Corporation IRBT were trading higher by more than 4.8 percent on Thursday after the company announced it has sold its defense and security business.

iRobot stated that it sold its business segment to Arlington Capital Partners for up to $45 million in total consideration, including a contingent payment based on achieving certain milestones.

iRobot noted that the transaction will enable management to better position as a leader in diversified home robots and focus on technologies for the connected home.

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"iRobot sees significant growth opportunities in the consumer robotic technology market, particularly in light of the successful Roomba 980 launch and the potential presented by the connected smart home," commented Colin Angle, iRobot chairman and chief executive officer.

"With 14 million robots in people's homes today and the leading market share within the robotic floor care segment, iRobot has revolutionized the way people clean. The divestiture of the Defense & Security business will allow us to focus on the Home Robots business, bring new products to market, continue our expansion in China and build upon successful new marketing campaigns. We are confident that our strategy of focusing on the home will position iRobot for continued growth and success."

iRobot's Board of Directors also expanded its share repurchase program by $65 million which will bring its total 2016 share buyback program to more than $100 million.