Medical device company Zimmer Biomet has announced its acquisition of robotics firm Monogram Technologies for approximately $177 million. This move will expand Zimmer’s robotics portfolio with Monogram’s semi- and fully autonomous surgical products. Shares of Monogram surged over 100% to $6.70 in premarket trading following the announcement.
The acquisition is significant as major players in the medical device industry, such as Medtronic and Johnson & Johnson, are focused on enhancing their robotic surgery offerings. The global market for robotic surgery devices is projected to reach nearly $16 billion by the end of the decade.
The deal will enable Zimmer, based in Warsaw, Indiana, to enhance its robotics platform and utilize Monogram’s FDA-approved semi-autonomous knee replacement technology. Zimmer aims to integrate Monogram’s technology, introduce fully autonomous surgical robots, and expand into additional applications beyond knee replacements by 2027.
Under the terms of the deal, Monogram stockholders will receive $4.04 per share in cash upfront, along with contingent value rights of up to $12.37 per share based on achieving certain milestones by 2030. Zimmer Biomet will finance the acquisition through cash and available debt financing.
The transaction is expected to close later this year and Zimmer anticipates it to have a neutral impact on adjusted earnings per share until 2027, becoming accretive from 2028 onwards.
(Reporting by Siddhi Mahatole in Bengaluru; Editing by Tasim Zahid)
