WARSAW — Zimmer Biomet Holdings Inc. and LDR Holding Corporation, a global medical device company that designs and commercializes novel, proprietary surgical technologies to treat spine disorders, announced Tuesday, June 7, both boards of directors have approved a definitive agreement under which Zimmer Biomet will commence a tender offer to acquire all of the outstanding shares of LDR for $37 per share in cash, which implies a transaction value of approximately $1 billion.

The transaction is subject to customary closing conditions and is expected to close in the third quarter, 2016.

Founded in France in 2000, LDR designs and commercializes innovative technologies making surgical procedures easier to perform and providing improved clinical outcomes in the treatment of spine disorders. The addition of LDR will bolsterZimmer Biomet’s presence in the global spine market and provide the company with an immediate and a leading position in the fast-growing cervical disc replacement and MIS segments. The combination is expected to meaningfully accelerate the growth of Zimmer Biomet’s spine business through the incremental revenues associated with entry into the cervical disc replacement market and cross-portfolio selling opportunities to both Zimmer Biomet and LDR customer bases.

Zimmer Biomet also expects the transaction to accelerate the future growth of its overall business. With respect to 2016, the company reiterates its previously provided revenue guidance, an increase of 2-3 percent as compared to adjusted pro forma full year 2015 on a constant currency basis. The company will update its revenue guidance to reflect this transaction at or about the time of closing.  Zimmer Biomet is also reiterating its 2016 adjusted diluted EPS guidance of $7.85-$8.

The transaction is expected to be neutral to adjusted diluted EPS in 2017 and accretive thereafter.

“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,” said David Dvorak, Zimmer biomet president and CEO. “This combination is consistent with our goal of driving meaningful growth across all musculoskeletal markets with innovative products, technologies and services that enhance patient outcomes.”

Christophe Lavigne, LDR co-founder, chairman, president and CEO, 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. We have great respect for the Zimmer Biomet team, who shares our passion for innovation as well as our commitment to patients and providers.”

Zimmer Biomet and LDR hosted a conference call at 8 a.m. today, Tuesday, June 7, to discuss the transaction. A digital recording is available through July 5, at (800) 406-7325,  conference identification number 4725679. A webcast replay is available for a limited time on Zimmer Biomet’s website under investor relations.

For more information, click here or follow Zimmer Biomet on Twitter. For more information regarding LDR, click here.