ZimVie shares catapulted by triple digits Monday after the dental implants maker agreed to a $730 million takeover deal.
The deal will see ZimVie be acquired by private equity firm Archimed for $19 per share. Needham analyst David Saxon says the offer values ZimVie stock at a 125% premium to its closing price on July 18 and at a 99% premium to its 90-day volume weighted average price.
Saxon wasn't surprised by the takeover news. ZimVie, which was created through a spinoff from the much larger medtech Zimmer Biomet, was reportedly fielding offers in June 2024. Osstem Implants was set to buy ZimVie, but the deal never materialized.
"We believe ZIMV's strategic alternatives exploration likely attracted the attention of the most likely potential buyers," he said in a client note. "As such, we believe the agreement with ARCHIMED is likely an end to last year's process."
ZimVie stock skyrocketed 122.3%, closing at 18.76.
Other Bids Unlikely For ZimVie
Saxon doesn't expect any other buyers to emerge, though ZimVie now has 40 days to shop around before the deal closes at the end of the year. He notes others in the dental implants space, including Dentsply Sirona, Envista, Henry Schein and Straumann, would all likely face antitrust hurdles.
Solventum, another medtech player, could make sense. But its dental implants business is the smallest part of its revenue mix.
ZimVie stock has mostly been in a downtrend since July 2024. Back then, shares traded mostly north of 20. Shares have traded below 10 a share since the middle of this April. The news Monday sent ZimVie stock to its highest point since last August.
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