Zimmer Biomet stock to acquire Monogram Technologies for $177 million

Investing.com - Zimmer Biomet (NYSE:ZBH), a profitable medical device company with a market capitalization of $18.5 billion and strong financial health according to InvestingPro metrics, has entered into a definitive agreement to acquire Monogram Technologies for $4.04 per share, representing an equity value of approximately $177 million and an enterprise value of approximately $168 million.

The transaction includes a contingent value right (CVR) worth up to $12.37 per share if all milestones are achieved, potentially bringing the total value to approximately $614 million. Monogram has developed the Monogram mBôs TKA System, which received FDA 510(k) clearance in March 2025 but has not yet sold any systems.

The CT-based robotic system features autonomous cutting and markerless tracking capabilities, which will enhance Zimmer Biomet’s existing robotic offerings. Zimmer Biomet does not expect the system to contribute to sales until fiscal year 2027 for a semi-autonomous version and fiscal year 2028 for the fully autonomous version.

BTIG has reiterated a Buy rating on Zimmer Biomet with a price target of $117.00 following the announcement of the acquisition. The firm noted questions about how this acquisition will impact Zimmer Biomet’s existing ROSA robotic system.

According to Zimmer Biomet management, the acquisition is focused on providing customer choice, defining the fully autonomous category of robotics, and appealing to surgeons who prefer autonomous cutting over the manual cutting currently offered by the ROSA system. Trading near its 52-week low, the stock currently appears undervalued according to InvestingPro analysis, which offers 8 additional key insights and a comprehensive Pro Research Report covering what really matters about this medical device leader.

In other recent news, Zimmer Biomet has announced its acquisition of Monogram Technologies for $177 million in equity value, with an enterprise value of $168 million. The deal includes a contingent value right of up to $12.37 per share, dependent on achieving certain milestones by 2030. Zimmer Biomet expects the acquisition to be neutral to adjusted earnings per share from 2025 to 2027 and accretive thereafter, contributing to revenue growth beginning in 2027. In addition, shareholders of Zimmer Biomet have approved amendments to the company’s 2009 Stock Incentive Plan, increasing the number of shares available for issuance and extending the plan’s term. The amendments also include specific changes such as prohibiting dividends on unvested awards and clarifying vesting requirements. Furthermore, Treace Medical (TASE:BLWV) has filed a lawsuit against Zimmer Biomet, alleging patent infringement related to its Lapiplasty® 3D Bunion Correction® technologies. Additionally, Zimmer Biomet has declared a quarterly cash dividend of $0.24 per share, payable on July 31, 2025, to stockholders of record as of June 26, 2025. Citi has maintained its Neutral rating on Zimmer Biomet stock following the acquisition announcement, with a price target of $104.00.

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