Global healthcare technology company Medtronic has signed definitive agreements to acquire a South Korea-based medical device company EOFlow for $738m.

Under the terms of the share purchase agreement (SPA), Medtronic will acquire all the shares of EOFlow at a price of KRW30,000 per share.

The company will acquire new shares of EOFlow at a price of KRW24,359 per share, pursuant to the share subscription agreement (SSA).

In addition, Medtronic will acquire all the outstanding public shares of EOFlow, at a price per share of KRW 30,000, as part of a public tender offer.

The acquisition is expected to close in the second half of this year, subject to a minimum tender condition and certain customary closing conditions, including regulatory approvals.

Medtronic diabetes executive vice president and president Que Dallara said: “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.

“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.”

EOFlow manufactures the EOPatch device, a tubeless, wearable, fully disposable insulin patch pump that continuously delivers insulin to people with diabetes.

The device features a unique microfluidic technology to deliver insulin with high accuracy and reliability while minimising the risk of insulin occlusion.

It is authorised for use in Europe, South Korea, Indonesia, and the UAE, with a compatible smartphone application to monitor and control the patch directly from a smartphone.

Upon closing of the acquisition, Medtronic intends to integrate the EOPatch device with its sensor and meal detection technology algorithm, currently used in its MiniMed 780G system.

EOFlow, together with Medtronic’s Meal Detection Technology algorithm and glucose monitor (CGM) sensor, will expand the company’s ability to address the needs of people with diabetes.

JP Morgan Securities served as financial advisor, while Kim & Chang and Ropes & Gray served as legal advisors to Medtronic, on the transaction.

Goldman Sachs & Co. served as a financial advisor, and Bae, Kim & Lee acting as legal advisor to EOFlow.

EOFlow CEO and founder Jesse J Kim said: “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.

“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.”