In a shocking development, after filing for Chapter 11 bankruptcy on December 15, 2025, iRobot’s market value plummeted by more than 80% in a single day – wiping out shareholders, while its Chinese supplier gained full control. The collapse of the Roomba pioneer stands in stark contrast to ServiceNow’s bold $7 billion acquisition of cybersecurity firm Armis, which underscores the gap that exists in the tech sector between struggling consumer gadgets and rapidly advancing enterprise security.
The Rapid Fall of the Roomba: What Destroyed The King of Robotics?
iRobot launched the Roomba in 2002, turning a cleaning fantasy once seen in science fiction into reality. Smart home devices like these mapped rooms and avoided obstacles, sparking a boom in consumer robotics. But then the troubles began.
Privacy concerns led EU regulators to block Amazon’s $1.7 billion acquisition in 2023. Subsequently, tariffs increased the cost of imported components, especially those from China. The company accumulated $190 million in debt, including $352 million in debt from Shenzhen Pesea Robotics.
iRobot (IRBT) shares plunged more than 80%. Picea has acquired 100% control of the company through an accelerated restructuring until February 2026. Your Roomba app and warranty are protected. Operations continue smoothly.
Practical tip: Look for budget robot vacuum cleaners from Eufy or Roborock—they’re not subject to tariffs and are often cheaper after negotiations.
- Impact on the consumer: Premium models will be lower, wireless robot mops will be more affordable.
- Investor warning: Avoid consumer technology hardware vulnerable to the trade war.
- India Twist: Buyers in Rajasthan are getting great deals on imported smart cleaning robots at US$90.7 per unit.
ServiceNow’s Cyber Coup: $7 Billion Armis Deal Signals a Massive Leap in Security
ServiceNow has turned the tide. This leading cloud company is nearing its largest acquisition yet: the $7 billion acquisition of Armis. Armis guarantees excellence in IoT and holds 40% of the Fortune 100 company.
Cyberattacks on connected devices cause trillions of dollars in losses annually – ransomware, data breaches, supply hacking. Armis detects threats in real time in printers, robots, and factories. Combine this with ServiceNow’s workflow? It would be a game-changer for enterprise cybersecurity.
Shares of ServiceNow (NOW) fell marginally (-0.3%). Analysts expect cloud security trends to drive growth of over 20%. Invest in shares of this mergers and acquisitions giant, bypassing Armis’s IPO.
Example: Hospitals using Armis reduced security deployment time by 50%. Enterprises should integrate now for zero-trust architecture.
- Key achievements: Ranked at the top of Gartner’s rankings for IT service management and cybersecurity.
- Market Growth: Managed Identity Services (MDR) to reach $200 billion by 2026.
- Pro Move: Add a layer of AI threat intelligence to your network access control.
Side by Side: The Debris of Robotics Meets the Cyber Revolution
Smart home technology is buckling under the pressure; cyber threats to enterprises are rewarding bold bets.
Conclusion
iRobot’s bankruptcy highlights a key point in the consumer robotics world: innovate quickly or fall behind. ServiceNow’s 2025 cybersecurity deals prove that flexibility pays off. For investors and executives, it’s better to focus on the cyber sector rather than gadgets—digital transformation prioritizes the secure.
Monitor the USD-INR exchange rate for global trades from Bhinmal. Position now for changes in 2026.
Are you ready to secure your setup? Audit IoT devices today, learn about endpoint protection platforms, and share your opinion below. Subscribe for more tech insights!
FAQ’s
Why did iRobot file for bankruptcy?
Tariffs increased costs, and debt skyrocketed after a deal with Amazon was blocked, leading to the acquisition of Pisea. Roomba machines kept working.
Will my Roomba stop updating?
No—app support and warranties will remain in place even during the reorganization.
Is ServiceNow’s acquisition of Armis a good move?
Yes, IoT security gains traction amid rising security breaches; revenue is expected to surge.
What impact do tariffs have on robot vacuum cleaners?
They raise the prices of imports from China, pushing companies like iRobot to the brink
What is the future of mergers and acquisitions in the cybersecurity space?
As threats are increasing, deals related to zero-trust and AI security tools are also increasing.