Dive Brief:
- Zimmer Biomet said Monday that it plans to buy Monogram Technologies, an orthopedics company with a robot for knee replacement procedures, for about $177 million.
- Monogram’s mBôS robot received Food and Drug Administration clearance in March for total knee replacement surgeries. The system uses CT scans and AI navigation for orthopedic procedures.
- Monogram’s robot will be sold with Zimmer implants in early 2027, the companies said in the announcement. They expect the merger to close later this year, if approved by regulators and Monogram’s shareholders.
Dive Insight:
The Monogram acquisition is expected to give surgeons more options and grow Zimmer’s orthopedic robotics portfolio. Currently, Zimmer sells its Rosa robot, which is designed for imageless surgeries, or can use 2D X-rays to help with surgical planning. Monogram’s robot, by contrast, uses CT imaging and offers predictive navigation.
Monogram is working on a fully autonomous version of the robot and securing additional applications beyond total knee surgery.
Zimmer CEO Ivan Tornos said the acquisition will give Zimmer “the most comprehensive and flexible technology ecosystem” to support surgeons’ varying preferences, and the combined firm will have “the potential to become the first company to deliver fully autonomous capabilities and redefine both the standard of care and the future of orthopedic surgery.“
Zimmer will buy all of Monogram’s outstanding shares for $4.04 per share in cash upfront, for a total equity value of about $177 million and an enterprise value of approximately $168 million. Monogram’s shareholders will also be able to receive up to $12.37 per share in common stock if certain development, regulatory and revenue milestones are met through 2030. Both companies’ boards have approved the deal.
Monogram’s shares increased by more than 75% to $5.78 in Monday morning trading.
Zimmer has been working to grow its robotics business through new indications and acquisitions. Last year, Zimmer received 510(k) clearance for its Rosa shoulder system and partnered with Think Surgical, which makes a wireless handheld robotic knee surgery device.
Zimmer expects the Monogram purchase will contribute to revenue growth starting in 2027 and be neutral to earnings per share in the first three years. The deal is expected to be accretive to earnings starting in 2028.
The Monogram deal follows Zimmer’s proposal to acquire Paragon 28 for $1.1 billion, which closed in April.
