Zimmer Biomet Holdings has signed an agreement to acquire medical device firm LDR Holding for about $1bn.
Under the deal, Zimmer will purchase all of the outstanding shares of LDR for $37.00 per share in cash.
Subject to customary closing conditions, the deal is expected to complete in the third quarter of this year.
Established in 2000, LDR is engaged in the design and commercialization of novel surgical technologies to treat patients with spine disorders.
The company produces Mobi-C cervical disc replacement (CDR) device and MIVo portfolio of products, which will be used in the lumbar and cervical fusion procedures.
In August 2013, the company secured approval from the US Food and Drug Administration (FDA) for the Mobi-C device to treat both one-level and two-level cervical disc disease.
The acquisition will expand Zimmer Biomet’s presence in the worldwide spine market and offer a position in the cervical disc replacement and MIS segments.
LDR co-founder, chairman, president and CEO Christophe Lavigne said: "We are delighted with this combination, which will further our commitment to improving spine care by providing greater access to our innovative product offerings for patients around the world, while offering our stockholders immediate cash value."
Zimmer Biomet president and CEO David Dvorak said: "This highly strategic and complementary transaction will enhance Zimmer Biomet’s innovation leadership in musculoskeletal healthcare by adding a premier spine platform to our portfolio of solutions."
In April this year, Zimmer Biomet agreed to acquire the US-based soft tissue reconstruction solutions provider Cayenne Medical for an undisclosed sum.
Image: Zimmer Biomet has agreed to acquire LDR Holding. Photo: courtesy of stockimages / FreeDigitalPhotos.net.