Zimmer Biomet Acquires Medical Device Maker LDR Holding

LDR Holding Corp (NASDAQ: LDRH) is a global medical device company focused on designing and commercializing novel and proprietary surgical technologies for the treatment of patients suffering from spine disorders. On Tuesday morning, shares of LDR Holding jumped up 63.44% to $36.90 after Zimmer Biomet Holdings Inc. (NYSE: ZBH) said it would acquire all of the outstanding shares of LDR for $37.00 per share in cash, which implies a transaction value of around $1.0 billion.

“This highly strategic and complementary transaction will enhance Zimmer Biomet’s innovation leadership in musculoskeletal healthcare by adding a premier spine platform to our portfolio of solutions,” said David Dvorak, President and CEO of Zimmer Biomet.  “This combination is consistent with our goal of driving meaningful growth across all musculoskeletal markets with innovative products, technologies and services that enhance patient outcomes.  The talented LDR team uniquely shares our deeply held commitment to innovating in a manner that restores mobility and alleviates pain for patients around the world, and we look forward to welcoming them to Zimmer Biomet.  We are confident that the combination of Zimmer Biomet’s Spine division and LDR will create a Spine company with the scale, talent and technology portfolio to become a leader in the $10 billion global Spine market.”

Christophe Lavigne, Co-Founder, Chairman, President and CEO of LDR, said, “We are delighted with this combination, which will further our commitment to improving spine care by providing greater access to our innovative product offerings for patients around the world, while offering our stockholders immediate cash value.  We have great respect for the Zimmer Biomet team, who shares our passion for innovation as well as our commitment to patients and providers.  We look forward to working closely with Zimmer Biomet to achieve a seamless transition and create lasting value for all of our stakeholders.”

This acquisition expects to complete in the third quarter. The tender offer from Zimmer Biomet represent 64% premium compared with Monday close price of LDR Holding. Shares of Zimmer Biomet Holdings Inc. (NYSE: ZBH) down 2.03% to $119.01 during Tuesday morning trading.

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