Globenewswireยท2025-07-14 11:35Core Viewpoint - Zimmer Biomet is acquiring Monogram Technologies to enhance its orthopedic robotics and navigation technologies, aiming to create a comprehensive portfolio that meets diverse surgeon needs. The acquisition is expected to be neutral to adjusted earnings per share from 2025 to 2027 and accretive thereafter, contributing to revenue growth starting in 2027 [1][6][7]. Group 1: Acquisition Details - Zimmer Biomet will acquire Monogram for $4.04 per share, totaling approximately $177 million in equity value and $168 million in enterprise value. Monogram shareholders will also receive a contingent value right (CVR) that could yield up to $12.37 per share based on future milestones [1][6]. - The transaction has been unanimously approved by the boards of both companies and is expected to close later this year, pending regulatory approvals and stockholder consent [8][6]. Group 2: Technological Advancements - Monogram's semi- and fully autonomous robotic technologies are anticipated to enhance Zimmer Biomet's ROSA Robotics platform, which is already a market leader outside the U.S. [2][4]. - Monogram has developed a CT-based, semi-autonomous robotic technology for total knee arthroplasty (TKA), which received FDA clearance in March 2025 and is expected to be commercialized with Zimmer Biomet implants in early 2027 [2][4]. Group 3: Strategic Implications - The acquisition is seen as a strategic move to strengthen Zimmer Biomet's position in the rapidly growing orthopedic robotics segment, with expectations of increased robotic knee adoption and a broader product range to attract new customers [6][7]. - Zimmer Biomet aims to become the first company to offer a fully autonomous surgical robot in orthopedics, potentially redefining standards of care in the field [3][2]. Group 4: Financial Outlook - The acquisition is projected to be neutral to adjusted earnings per share in 2025, 2026, and 2027, with expectations of accretion starting in 2028. It is also anticipated to generate high-single digit returns on invested capital by year five [7][6]. - Funding for the acquisition will come from a combination of cash on hand and available debt financing, with Zimmer Biomet maintaining a strong balance sheet [5][6].