S.Korea's i-Sens buys US glucose-measuring device maker for $27 mn

South Korean maker of diabetes-related devices i-Sens Inc. on Wednesday announced its planned acquisition of AgaMatrix, an American manufacturer of blood glucose monitoring (BGM) devices.

i-Sens bought AgaMatrix, a subsidiary of AgaMatrix Holdings, for $27 million (36 billion won) to expand its presence on the global market, with the purchase of a 100% stake set for June 16.

The American company supplies BGM devices to CVS Pharmacy, the largest drugstore chain in the US, and Sanofi and Alliance Healthcare in Europe. Last year, AgaMatrix posted $43.9 million in sales and $3.2 million in operating profit.

"By utilizing AgaMatrix's sales network and resources in the US and Europe, we can easily supply i-Sens self- and continuous BGM devices being prepared for release," an i-Sens source said. "After the acquisition, we can boost operating profit by applying our cost competitiveness to AgaMatrix."

"Through this acquisition, our share of the British market for self-BGM systems will exceed 20%," the source added. "Based on AgaMatrix's record of supply to CVS and Sanofi, we will target more distribution networks in the US and enter third markets such as Central and South America."

i-Sens has applied for approval in South Korea and Europe of continuous BGM devices, planning to launch in the former this year and the latter in the first half of next year. Through AgaMatrix, the company will accelerate its expansion on the global market for such devices.

"As our second overseas M&A after CoaguSense in 2016, this acquisition seeks to make us a global tier company," i-Sens CEO Nam Hak-hyun said. "Synergy effects will be created not only in AgaMatrix and self-BGM devices, but also in continuous monitoring devices."

Write to Min-Su Han at hms@hankyung.com