Zimmer Biomet (ZBH, Financial) announced its acquisition of Monogram Technologies, a robotic technology company, for approximately $177 million. This move aims to integrate Monogram's semi-automatic and fully automatic surgical products into Zimmer Biomet's growing robotic business. Following the announcement, Monogram's stock price more than doubled to $6.70.
The acquisition comes as major medical device manufacturers, including Medtronic and Johnson & Johnson, are enhancing their surgical robotics offerings. According to GlobalData, the global surgical robotics market is expected to reach nearly $16 billion by the end of the decade.
Based in Warsaw, Indiana, Zimmer Biomet will expand its robotic platform and acquire Monogram's semi-automatic knee replacement technology, which received FDA approval in March 2025. Zimmer Biomet plans to integrate Monogram's technology and introduce fully automated surgical robots and other applications beyond knee replacements by 2027.
Monogram shareholders will receive $4.04 per share in cash, a 22.8% premium over the previous closing price. Additionally, shareholders could earn up to $12.37 per share if specific milestones are met by 2030. Zimmer Biomet plans to fund the acquisition through a combination of cash and available debt, with the transaction expected to close later this year. The company anticipates the deal will be earnings neutral until 2027 and positively impact earnings from 2028 onward.
