Zimmer Biomet announced on Monday its plan to acquire Monogram Technologies, a company specializing in robotics for orthopedic surgeries, for approximately $177 million. The acquisition aims to enhance Zimmer’s offerings in the orthopedic robotics market, particularly with Monogram’s robotic system designed for knee replacement procedures.
Monogram’s mBôS robot received Food and Drug Administration (FDA) clearance in March 2023 for total knee replacement surgeries. This advanced system employs CT scans and artificial intelligence (AI) navigation to assist in orthopedic procedures. Following the acquisition, the mBôS robot is expected to be marketed alongside Zimmer implants starting in early 2027. The deal is anticipated to close later this year, pending approval from regulatory authorities and Monogram’s shareholders.
Strategic Growth in Orthopedic Robotics
The acquisition is viewed as a strategic move to expand Zimmer’s orthopedic robotics portfolio, providing surgeons with enhanced options. Currently, Zimmer offers the Rosa robot, which is tailored for imageless surgeries or can utilize 2D X-rays to aid surgical planning. In contrast, Monogram’s robot leverages CT imaging and offers predictive navigation capabilities.
Monogram is also in the process of developing a fully autonomous version of the robot, which could broaden its applications beyond total knee surgeries. Ivan Tornos, CEO of Zimmer Biomet, emphasized that this acquisition positions the company to create “the most comprehensive and flexible technology ecosystem” for surgeons. He noted the potential for the combined entity to lead in delivering fully autonomous surgical capabilities, potentially redefining standards in orthopedic care.
Zimmer plans to purchase all outstanding shares of Monogram at $4.04 per share in cash, amounting to a total equity value of about $177 million. Additionally, Monogram’s shareholders may receive up to $12.37 per share in common stock if specific development, regulatory, and revenue milestones are achieved through 2030.
Market Reactions and Future Implications
Following the announcement, Monogram’s shares surged by over 75% to $5.78 in morning trading, reflecting positive investor sentiment regarding the merger. Both companies’ boards have approved the agreement, paving the way for what Zimmer anticipates will be a significant contribution to revenue growth starting in 2027. The deal is expected to have a neutral impact on earnings per share during the initial three years, with an accretive effect projected beginning in 2028.
This acquisition follows Zimmer’s previous proposal to acquire Paragon 28 for $1.1 billion, which was finalized in April. Zimmer’s ongoing efforts to expand its robotics business through new acquisitions and innovations underscore its commitment to enhancing surgical technology and improving patient outcomes in orthopedic procedures.
