US-based diabetes technology firm Tandem Diabetes Care has agreed to acquire Switzerland-based Sigi Patch Pump developer AMF Medical.

The Sigi Patch Pump is said to be an ergonomic, rechargeable patch pump that manages diabetes by using pre-filled insulin cartridges.

Compatible with automated insulin delivery technology, the pump is under development and not commercially available, Tandem Diabetes said.

Tandem Diabetes Care president and chief executive officer John Sheridan said: “This acquisition supports our commitment to drive growth through innovation, as AMF Medical has novel technology and a shared passion for creating easy-to-use solutions to improve the lives of people with diabetes.

“Our portfolio approach to diabetes care is designed to bring the benefits of advanced insulin pump therapy to more people worldwide, utilize our expertise in automated insulin delivery technology and data management, and leverage our commercial infrastructure to create shareholder value.”

According to the diabetes technology firm, the acquisition is expected to expand Tandem’s type 1 and type 2 addressable market opportunities. The Sigi Patch Pump will cover the segment of people living with diabetes not served by Tandem as of now.

AMF Medical’s proprietary insulin delivery solution will also help Tandem to fasten time-to-market for a patch pump in the latter’s product portfolio.

The insulin delivery and diabetes technology firm said that the deal also aligns with its sustainability goals via a pump that generates less electronic and battery waste. The insulin delivery solution will offer a way for channel expansion and boost customer access.

The deal follows Tandem’s strategic investment of CHF8m in AMF during the third quarter of this year. The total deal is valued at about CHF200m, out of which CHF62.4m will be paid in cash after the closing of the transaction.

Tandem said that the remaining CHF129.6m will be distributed to AMF as it reaches specific milestones.

Tandem and AMF are planning to complete the deal in the coming weeks, with a closing date of January 2023.