Zimmer Biomet to acquire Monogram for $177m
Zimmer Biomet has signed a definitive agreement to acquire orthopaedic robotics company Monogram Technologies for an upfront cash payment of $4.04 per share, reflecting an equity value of around $177m and nearly $168m enterprise value.
Common stockholders of Monogram are entitled to a non-tradeable contingent value right (CVR) that could yield up to $12.37 per share in cash, contingent upon meeting specific product development, regulatory, and revenue milestones by 2030.
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Both companies’ boards of directors have granted unanimous approval for the proposed transaction.
The acquisition is expected to bolster Zimmer Biomet’s ROSA robotics platform with Monogram’s semi-autonomous and fully autonomous robotic technologies.
Monogram’s 510(k)-cleared semi-autonomous knee arthroplasty robotic technology is set to be commercialised with Zimmer implants in early 2027.
The closure of the transaction is said to pave the way for Zimmer Biomet to potentially become the first to provide a completely autonomous surgical robot.
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By GlobalDataWith the ROSA platform nearing 2,000 installations worldwide, Zimmer Biomet is investing in new products and software applications. These include ROSA Knee with OptimiZe and ROSA Posterior Hip, which is expected to launch by 2027.
The proposed transaction will be funded through Zimmer Biomet’s cash reserves and debt financing sources.
The acquisition is subject to regulatory approvals and other customary closing conditions, as well as approval by Monogram stockholders. The merger is expected to close later this year.
Morgan Stanley & Co is acting as the exclusive financial adviser to Zimmer Biomet, with Hogan Lovells US providing legal advice.
Wells Fargo Securities and Duane Morris are serving as financial and legal advisers, respectively, to Monogram.
Zimmer Biomet president, chairman and CEO Ivan Tornos said: “Upon closing, our customer-centric portfolio will consist of the most comprehensive and flexible technology ecosystem to support the varying preferences of a vast array of surgeons – now and into the future.
“With Monogram’s proprietary technology, Zimmer Biomet has the potential to become the first company to deliver fully autonomous capabilities and redefine both the standard of care and the future of orthopaedic surgery.”
In April, Zimmer Biomet completed the acquisition of Paragon 28 for an enterprise value of approximately $1.2bn.
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