Medtronic To Buy EOFlow Maker Of Wearable Insulin Patch

(RTTNews) - Medtronic plc (MDT), a healthcare technology company, announced on Thursday that it has entered into a definitive agreement to acquire EOFlow Co. Ltd. manufacturer of the EOPatch device; a wearbale insulin patch that is tubeless and fully disposable.

"To the extent that all the public shares participate in the tender offer, the total consideration for the acquisition of the shares in EOFlow would be KRW 971 billion, or $738 million, at current exchange rates," the company said in a statement. The EOPatch device is designed to deliver insulin with high accuracy and reliability while minimizing the risk of insulin occlusion. It is authorized for marketing in Europe, South Korea, Indonesia, and the United Arab Emirates with a compatible smartphone application that allows users to monitor and control the patch directly from their phone.

Upon closing this transaction, Medtronic will integrate EOPatch device with its next-generation sensor and Meal Detection Technology algorithm currently offered in its MiniMed 780G system.

Medtronic has share purchase agreements with Jesse J. Kim, founder and CEO of EOFlow and Luis Malave, president of EOFlow where it will acquire all their shares for a price of 3000 Korean won per share.

Pursuant to the share subscription agreement the company will acquire new shares for a price of 24,359 korean won per share to fund EOFlow's ongoing operational and research and development requirements.

The company will also undertake a public tender offer to acquire up to all outstanding public shares at a price of 30,000 Korean won per share.

The acquisition is expected to close in the second half of this year. JP Morgan Securities LLC is Medtronic's financial advisor and Goldman Sachs & Co is EOFlow's financial advisor.

In premarket activity, shares of Medtronic are trading at $86.92 down 0.65% or $0.57 on the New York Stock Exchange.