ZBH Stock Set to Benefit From New Monogram Technologies Buyout Deal

Zimmer Biomet Holdings ZBH recently entered into a definitive agreement to acquire Monogram Technologies Inc. MGRM, an orthopedic robotics company. Under the terms of the deal, ZBH will purchase all outstanding Monogram shares for an upfront payment of $4.04 per share in cash, corresponding to an equity value of approximately $177 million and an enterprise value of nearly $168 million.

ZBH will also issue non-tradeable contingent value rights to Monogram common stockholders, entitling them to receive up to $12.37 per share of common stock in cash if certain product development, regulatory and revenue milestones are met through 2030. The proposed transaction has received unanimous approval from the respective boards of directors of Zimmer Biomet and Monogram.

ZBH Stock’s Likely Trend Following the News

Since the July 14 announcement, Zimmer Biomet shares have edged up 0.4%, closing at $94.22 yesterday. The proposed transaction expands the company’s extensive suite of orthopedic robotics, enabling solutions and analytics to address the needs of surgeons pre, intra and post-operatively. Accordingly, we expect the latest development to positively boost market sentiment surrounding ZBH stock.

Zimmer Biomet has a market capitalization of $18.60 billion. The company’s earnings yield of 8.5% compares favorably to the industry average of 1.1%. In the trailing four quarters, it delivered an average earnings surprise of 1.1%.

Significance of ZBH’s Latest Buyout

Monogram's semi and fully autonomous robotic technologies are set to bring new and differentiated capabilities to expand Zimmer Biomet's flagship ROSA Robotics platform and broad suite of navigation and enabling technologies. Monogram has developed a CT-based, semi-autonomous, AI-navigated total knee arthroplasty (TKA) robotic technology, which received FDA 510(k) clearance in March 2025 and is expected to be commercialized with Zimmer Biomet implants in early 2027.

Additionally, Monogram is developing a fully autonomous version of the technology, with the potential to enhance safety, efficiency and outcomes, as well as additional applications beyond TKA. Once the transaction closes, Zimmer Biomet expects to become the first and only company in orthopedics to offer a fully autonomous surgical robot.

ZBH’s New Deal — A Compelling Strategic & Financial Move

Zimmer Biomet plans to fund the proposed transaction through a mix of existing cash and other available debt financing sources. The company expects to maintain a strong balance sheet while continuing to support its stated capital allocation priorities.

The Monogram acquisition will contribute to revenue growth starting in 2027 by improving ZBH’s robotic knee adoption in the United States through reaching new customers with a broader product range and expanding its industry-leading global knee offerings. Zimmer Biomet anticipates the acquisition will be neutral to adjusted earnings per share in 2025, 2026 and 2027, and accretive in 2028 and beyond. Additionally, the transaction is projected to generate high-single-digit return on invested capital by year five, with an increasing contribution thereafter.

The proposed transaction is subject to receipt of required regulatory approvals, approval by Monogram's common stockholders and other customary closing conditions. The merger is expected to close later this year.

Industry Prospects Favor ZBH Stock

Per a research report, the global orthopedic surgical robots market was valued at $743.3 million in 2023 and is expected to witness a compound annual rate of 5.7% through 2030. Some of the key factors driving the market’s growth are increasing cases of knee and hip replacement surgeries, new market entrants in the healthcare robotics field and better improvement in patient outcomes.

More Updates From ZBH

This month, Zimmer Biomet has entered into a strategic partnership with global MedTech company Getinge to distribute Getinge’s Operating Room capital products to its Ambulatory Surgery Center (ASC) customers. This partnership creates a turnkey solution for ASC customers, who can now access Getinge’s infection control and surgical portfolio and Zimmer Biomet’s broad menu of best-in-class implants and surgical robotics from a single source.

ZBH Stock Price Performance

Year to date, ZBH shares have dropped 10.8% against the industry’s 4.8% growth.

ZBH’s Zacks Rank & Key Picks

Zimmer Biomet currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space are Phibro Animal Health PAHC and Boston Scientific BSX. While Phibro Animal Health sports a Zacks Rank #1 (Strong Buy), Boston Scientific carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Estimates for Phibro Animal Health’s fiscal 2025 earnings per share have remained constant at $2.04 in the past 30 days. Shares of the company have surged 75% in the past year compared with the industry’s 10.8% growth. Its earnings yield of 7.5% compares comfortably with the industry’s 1% yield. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 30.6%.

Estimates for Boston Scientific’s 2025 earnings per share have remained constant at $2.91 in the past 90 days. Shares of the company have rallied 32.3% in the past year compared with the industry’s growth of 10.8%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.8%. In the last reported quarter, it delivered an earnings surprise of 11.9%.

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This article originally published on Zacks Investment Research (zacks.com).

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