The transaction, which is expected to close in the first quarter of 2016, is subject to certain customary closing conditions.

"This agreement represents a great opportunity for both Insulet and our Neighborhood Diabetes business," said Patrick Sullivan, President and Chief Executive Officer of Insulet.

"This transaction is an important step in positioning Insulet as a more focused organization, enabling us to direct our operational and financial resources toward driving continued growth of our innovative OmniPod and Drug Delivery products while improving our financial profile for profitable growth over the long term.

"We continue to execute on our strategy to generate long-term, higher-margin revenue growth and deliver increasing shareholder value with our truly differentiated product offerings."

Jonathan Black, Chief Executive Officer of Liberty Medical, said, "Neighborhood Diabetes has a strong product offering and a history of providing excellent patient service. Bringing Liberty and Neighborhood Diabetes together enhances our Insulin Pump Center of Excellence and empowers our combined teams to deliver better health to a larger population of people living with diabetes."

The transaction is expected to improve Insulet’s gross margins on an annual basis by low-to-mid single digits and to be accretive to earnings, excluding non-recurring charges and transition costs related to the sale of the business.

In connection with this transaction, the Company expects non-recurring charges of approximately $10 million in the fourth quarter of 2015, with additional charges in the first quarter of 2016. Insulet will provide additional information regarding the financial impact of this transaction during its previously-announced earnings call to discuss fourth quarter 2015 financial results on February 25, 2016.

Insulet is an innovative medical device company dedicated to making the lives of people with diabetes easier. Through its OmniPod Insulin Management System, Insulet seeks to expand the use of insulin pump therapy among people with insulin-dependent diabetes.

The OmniPod is a revolutionary and easy-to-use tubeless insulin pump that features just two parts and a fully-automated cannula insertion.