iRobot to Sell its Military Division, Focus Soley on Consumer Goods

By Staff Writer

Feb 08, 2016 05:42 AM EST

iRobot, the makers of the automated cleaning robot, Roomba, also had their technology on the battlefield while in the household. Their contract with DARPA started in 1998, but last week the company announced that they would be leaving the military field, selling their defense and security team to a private equity firm.

The announcement, made Thursday, February 4, detailed the sale. Arlington Capital Partners will be buying the military branch of the company for up to $45 million. The new company's focus will be only on security robots. The sale was due to pressure from iRobot's shareholders and investor Red Mountain Capital, who has a 6.1 percent stake.

Forbes reported CEO Colin Angle's explanation for the sale. "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. 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."

According to The Verge, the company had generated more profits through its consumer goods division than with its military contract, making more than $384 million compared to $24.5 million with DARPA. The company also cited its strong sales in the US and China.

While under the military contract, iRobot was responsible for the creation of robots, such as PackBot, used for reconnaissance, bomb and hazmat disposal, and vehicle inspection. The robots have been deployed in Iraq and Afganistan and even the Fukushima Daiichi nuclear disaster.

The designs of the robots are not very similar to the innocent looking, round, robots that Roombas are known for. According to Ars Technica, the military focused robots have two sets of tracks, used for navigating large obstacles like rocks, and come with an assortment of accessories to help with specific tasks like cameras or gripper arms to open unknown packages. They also widely varied in size, from a "backpack" style to a heavy-duty version that weighed up to 500 pounds.

In the end, the separation of iRobot from its military background will probably be a good PR move for the company. Robots do not always have a great reputation with the general public and any talk of military involvement lends to ideas of secret projects and weaponization. Either way, the market was the major driving force in the final decision, with iRobot's consumer division outselling the defense division.

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