IRELAND —Global healthcare technology company Medtronic has announced its definitive agreement to acquire EOFlow, a South Korea-based medical device company in a significant move to enhance its diabetes care offerings.
The deal, valued at KRW 971 billion (US$738 million), will see Medtronic acquire all the shares of EOFlow, further strengthening its position in the diabetes management market.
Under the terms of the share purchase agreement (SPA), Medtronic will purchase EOFlow shares at a price of KRW 30,000 (US$22.67) per share.
Additionally, as part of the share subscription agreement (SSA), Medtronic will acquire new shares of EOFlow at KRW 24,359 (US$18.4) per share.
The acquisition will also involve the purchase of all outstanding public shares of EOFlow at KRW 30,000 (US$22.67) per share through a public tender offer.
The completion of the acquisition is anticipated in the second half of this year, subject to minimum tender conditions and customary closing requirements, including regulatory approvals.
Medtronic aims to simplify diabetes management and provide automated insulin delivery options that meet the needs and preferences of its customers.
With the acquisition of EOFlow, Medtronic intends to introduce a unique wearable patch option that offers greater choice and fosters innovation in diabetes care.
EOFlow is known for manufacturing the EOPatch device, a tubeless and fully disposable insulin patch pump designed to continuously deliver insulin to individuals with diabetes.
The EOPatch device stands out with its cutting-edge microfluidic technology, which ensures accurate and reliable insulin delivery while minimizing the risk of insulin occlusion.
It has already received marketing approvals in Europe, South Korea, Indonesia, and the UAE. EOFlow has also submitted the device for clearance by the U.S. Food and Drug Administration (FDA) and has obtained FDA breakthrough device designation for its wearable, integrated artificial pancreas.
The EOPatch device can be conveniently monitored and regulated through a compatible smartphone application, enabling users to have greater control over their diabetes management directly from their mobile device.
Upon the completion of the acquisition, Medtronic plans to integrate the EOPatch device with its existing sensor and meal detection technology algorithm, which is currently utilized in the company’s MiniMed 780G system.
This integration will expand Medtronic’s capabilities in addressing the specific needs of people living with diabetes.
In a market model, GlobalData predicts the insulin pump market to be worth US$14.1 billion by 2033.
In addition to this strategic acquisition, Medtronic recently made some organizational adjustments to streamline its operations.
The announced job cuts, without disclosing the specific numbers, and expressed its intention to divest some of its smaller businesses, such as patient monitoring and respiratory interventions.
These decisions are part of Medtronic’s efforts to focus on its core units, particularly heart, and diabetes, and concentrate its resources on advancing key areas of healthcare.
For all the latest healthcare industry news from Africa and the World, subscribe to our NEWSLETTER, and YouTube Channel, follow us on Twitter and LinkedIn, and like us on Facebook.
