Tandem Diabetes Care has signed a definitive agreement to buy Swiss medical equipment manufacturer AMF Medical.
Under the deal terms, Tandem Diabetes Care will make a cash payment of $66.9m (Sfr62.4m) upon closing, in addition to a previous $8.57m (Sfr8m) strategic investment made in the third quarter of the year.
Additionally, Tandem Diabetes Care will make earnout payments of up to $138.9m (Sfr129.6m) upon achieving certain milestones.
AMF Medical is currently developing the Sigi Patch Pump, which has been designed for diabetes mellitus treatment.
Sigi has been designed as an ergonomic, rechargeable patch pump for reducing the burden of managing diabetes.
It works with readily available pre-filled insulin cartridges and can be controlled directly through the user’s personal smartphone.
The insulin patch pump also offers compatibility with automated insulin delivery technology.
It received breakthrough device designation from the US Food and Drug Administration (FDA) last November.
Tandem Diabetes Care stated that AMF Medical’s insulin delivery solution expands its market opportunities for both type 1 and 2 diabetes.
The device also offers the company an additional pump that reduces electronic and battery waste.
Tandem Diabetes Care president and CEO 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, utilise our expertise in automated insulin delivery technology and data management, and leverage our commercial infrastructure to create shareholder value.”
Subject to the satisfaction of customary closing conditions, the transaction is anticipated to conclude next January.
For the deal, Homburger served as legal adviser and SVB Securities was the exclusive financial adviser to AMF Medical.
Baker & McKenzie acted as legal adviser to Tandem Diabetes Care.