Zimmer Biomet announced on Monday its intention to acquire Monogram Technologies, a robotics firm specializing in orthopedic surgery, for approximately $177 million. This acquisition aims to enhance Zimmer’s offerings in the field of orthopedic robotics, particularly for knee replacement procedures.
Monogram’s mBôS robot recently received Food and Drug Administration (FDA) clearance in March for its use in total knee replacement surgeries. The system integrates CT scans and artificial intelligence for precise navigation during orthopedic procedures. This technology is expected to be sold alongside Zimmer implants beginning in early 2027, contingent upon regulatory and shareholder approvals.
Expanding Orthopedic Robotics Portfolio
The acquisition is poised to provide surgeons with a broader array of options and bolster Zimmer’s existing robotic offerings. Currently, Zimmer markets its Rosa robot, which facilitates imageless surgeries or employs 2D X-rays for surgical planning. In contrast, Monogram’s system utilizes advanced CT imaging and predictive navigation technology. Monogram is also developing a fully autonomous version of its robot, expanding its applications beyond knee surgery.
Ivan Tornos, CEO of Zimmer Biomet, expressed that this acquisition will empower the company to offer “the most comprehensive and flexible technology ecosystem” tailored to surgeons’ diverse preferences. He believes that together, the firms have the potential to pioneer fully autonomous capabilities, thereby transforming the standard of care in orthopedic surgery.
Financial Details and Market Impact
Zimmer will acquire all of Monogram’s outstanding shares at the rate of $4.04 per share in cash, resulting in an equity value of approximately $177 million and an enterprise value nearing $168 million. Additionally, Monogram’s shareholders could receive up to $12.37 per share in common stock based on meeting specific development, regulatory, and revenue milestones by 2030.
Both boards have approved the transaction, which has already had a positive impact on Monogram’s stock. Following the announcement, shares surged by over 75%, reaching $5.78 in trading on Monday morning.
Zimmer has been actively pursuing growth in its robotics sector through acquisitions and new product introductions. Last year, the company received 510(k) clearance for its Rosa shoulder system and established a partnership with Think Surgical, which produces a wireless handheld robotic device for knee surgery.
The company anticipates that the Monogram acquisition will contribute to revenue growth starting in 2027 and will be neutral to earnings per share within the first three years. It is projected to positively affect earnings beginning in 2028. This acquisition follows Zimmer’s recent proposal to acquire Paragon 28 for $1.1 billion, which successfully closed in April.
As Zimmer Biomet moves forward with this strategic acquisition, it aims to solidify its position as a leader in the rapidly evolving field of orthopedic robotics, providing surgeons with innovative tools to enhance patient care.
