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Investing.com - Citi has reiterated its Neutral rating and $104.00 price target on Zimmer Biomet (NYSE:ZBH), currently trading near its 52-week low at $93.99, following the company’s announcement of its acquisition of Monogram Technologies. According to InvestingPro analysis, the company appears undervalued at current levels.
Zimmer Biomet, with its robust financial health score of "GREAT" on InvestingPro, is acquiring Monogram Technologies for $4.04 per share in cash, representing an equity value of $177 million and an enterprise value of $168 million. The deal also includes a contingent value right (CVR) of up to $12.37 per share in cash, dependent on achieving certain milestones through 2030. The company’s strong balance sheet, with liquid assets exceeding short-term obligations, positions it well for this strategic acquisition.
The acquisition will integrate Monogram’s total knee arthroplasty (TKA) robotic technology into Zimmer’s product portfolio. This CT-based semi-autonomous, AI-navigated system received FDA 510k approval in March 2025 and is expected to be commercialized in early 2027. With a market capitalization of $18.68 billion and a 14-year track record of consistent dividend payments, Zimmer Biomet demonstrates strong fundamentals for long-term investors.
Zimmer Biomet expects the acquisition to contribute to revenue beginning in 2027. The company anticipates the deal will be neutral to adjusted EPS from 2025-2027 and accretive thereafter, funded through cash on the balance sheet and debt, with projected high single-digit returns on ROIC by year five.
The transaction is expected to close later this year, after which Zimmer Biomet management expects to be the only company with a fully autonomous surgical robot, marking another step in the company’s transformation path.
In other recent news, Zimmer Biomet Holdings, Inc. announced its acquisition of Monogram Technologies in a deal valued at approximately $177 million, aiming to enhance its ROSA Robotics platform. The acquisition includes a cash payment of $4.04 per share to Monogram stockholders, along with a contingent value right that could provide additional payments if certain milestones are met by 2030. Zimmer Biomet also faced a legal challenge as Treace Medical (TASE:BLWV) Concepts filed a lawsuit alleging patent infringement related to its Lapiplasty® 3D Bunion Correction® technologies. Additionally, Zimmer Biomet’s shareholders approved amendments to the 2009 Stock Incentive Plan, increasing available shares and extending the plan’s term, among other changes. The company declared a quarterly dividend of $0.24 per share, payable on July 31, 2025, to shareholders of record as of June 26, 2025. Zimmer Biomet also appointed Kevin Thornal as Group President for the Americas, effective July 1, 2025, to lead its commercial strategy in the region. These developments reflect Zimmer Biomet’s ongoing efforts to expand its technological capabilities and strengthen its market position.
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