Dexcom In Talks To Acquire Insulet, Create a Giant In Diabetes Devices: Bloomberg

Dexcom Inc DXCM is reportedly in talks to acquire medical-device company Insulet Corporation PODD to create a giant in diabetes devices, according to people with knowledge of the matter.
According to Bloomberg, talks between the companies are ongoing, and an agreement could be reached in the coming weeks. Discussions could still be delayed or fall apart, the people said.
Insulet had a market capitalization of about $14.1 billion at Monday’s close, while Dexcom was valued at $31.8 billion.
The talks come amid a recent slump in healthcare dealmaking, which had been booming in recent years as insurance providers, drugmakers, and device companies paired up to diversify and add scale.
The U.S. healthcare companies have announced $103 billion worth of deals this year, down 45% from last year, as stock market volatility and uncertainty about the macroeconomy have caused activity to slow.
Dexcom sells glucose-monitoring systems used by people with diabetes. Insulet makes pumps that deliver insulin. The companies have a partnership in which Insulet’s delivery system can connect to Dexcom’s continuous glucose monitor.
Combining the two companies would give San Diego, California-based Dexcom the tools to create a closed-loop system in which diagnosis and treatment are provided in one.
Price Action: PODD shares traded 10.70% higher at $224.60, while DCXM traded 5.53% lower at $306 during premarket trading on the last check Tuesday.