Medtronic to acquire wearable insulin patch maker EOFlow
Acquisition will expand company's ability to serve more people living with diabetes around the world within one seamless Medtronic ecosystem of support
"Our goal is to simplify diabetes management and deliver the well-established benefits of automated insulin delivery to our customers in the ways they want and need," said Que Dallara, EVP & President, Medtronic Diabetes. "We're excited to introduce a differentiated wearable patch option to provide more patient choice and drive further innovation for those who want to use technology to make living with diabetes easier. We look forward to expanding our offerings to participate in the patch pump market and enabling those customers access to our seamless ecosystem of support."
The EOPatch® device, which features a proprietary microfluidic technology designed to deliver insulin with high accuracy and reliability while minimizing the risk of insulin occlusion, is authorized for marketing in
"We're thrilled to accelerate our next phase of growth with a partner like Medtronic who shares our goal of simplifying diabetes management to make life easier for the customers we serve," said Jesse J. Kim, CEO and founder of EOFlow. "Together, we'll work to advance innovation in wearable insulin patch technology to expand our reach to more individuals around the world living with diabetes. With a global footprint in over 100 countries, ability to scale up manufacturing quickly, and advanced software and sensor capabilities, Medtronic is the ideal strategic partner for EOFlow."
Pursuant to share purchase agreements (SPA) with Jesse J. Kim (CEO) and Luis Malave (President), Medtronic will acquire all of their shares in EOFlow at a price per share of
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
Following close, the transaction is expected to be less than 1% dilutive to Medtronic's adjusted earnings per share in each of the first three years, and neutral to accretive thereafter. The anticipated partial year dilution was included in the fiscal year 2024 guidance Medtronic issued on May 25. In addition, EOFlow is expected to be accretive to Medtronic's weighted average market growth rate (WAMGR) and meets Medtronic's long-term financial metrics for acquisitions.
Medtronic's financial advisor for the transaction is JP Morgan Securities LLC, with Kim & Chang and Ropes & Gray LLP acting as legal advisors. EOFlow's financial advisor is Goldman Sachs & Co. LLC, with Bae, Kim & Lee LLC acting as legal advisor.
About EOFlow (www.eoflow.com)
EOFlow Co., Ltd. is a South Korean medical device company founded in 2011 and is headquartered in
About Medtronic Diabetes (www.medtronicdiabetes.com)
Medtronic Diabetes is on a mission to alleviate the burden of diabetes by empowering individuals to live life on their terms, with the most advanced diabetes technology and always-on support when and how they need it. We've pioneered first-of-its-kind innovations for over 40 years and are committed to designing the future of diabetes management through next-generation sensors (CGM), intelligent dosing systems, and the power of data science and AI while always putting the customer experience at the forefront.
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in
Any forward-looking statements are subject to risks and uncertainties such as those described in Medtronic's periodic reports on file with the Securities and Exchange Commission. Actual results may differ materially from anticipated results.
EOPatch® is a registered trademark of EOFlow Co., Ltd.
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SOURCE Medtronic plc