Warsaw, Ind.-based Zimmer Biomet will acquire Austin, Texas-based LDR Holding for $1 billion.
Here are nine things to know:
1. Both companies' board of directors approved a definitive agreement for Zimmer Biomet to start a tender offer to acquire all LDR outstanding shares for $37 per share in cash.
2. Zimmer Biomet will use cash balances on hand to pay for the transaction, as well as availability under its revolving credit facility. The company will issue $750 million of senior unsecured notes, from which the proceeds will repay the credit facility.
3. Zimmer Biomet anticipates completing the acquisition in the third quarter of 2016.
4. Adam Johnson, Zimmer Biomet group president of spine, CMF and thoracic and dental, will head the new Spine & CMF category.
5. Christophe Lavigne, LDR chairman, president and CEO, and Patrick Richard, LDR executive vice president and LDR Médical general counsel manager, will remain in key global spine business leadership positions within the company.
6. Zimmer Biomet plans to keep a presence in LDR's technology hubs of Austin, Texas and Troyes, France.
7. LDR develops technologies to treat patients with spine disorders, including its Mobi-C cervical disc replacement device and MIVo portfolio for lumbar and cervical fusions.
8. With the acquisition, Zimmer Biomet will establish a global spine market footprint, especially in the cervical disc replacement and minimally invasive surgery segments.
9. Zimmer Biomet also plans to leverage cross-portfolio selling opportunities to its and LDR's customer bases.
"We are confident that the combination of Zimmer Biomet's Spine division and LDR will create a spine company with the scale, talent and technology portfolio to become a leader in the $10 billion global spine market," said David Dvorak, president and CEO, Zimmer Biomet.