Zimmer Biomet Holdings Inc., a global provider of musculoskeletal healthcare, and LDR Holding Corporation, a global medical device company, have announced that both boards of directors have approved a definitive agreement under which Zimmer Biomet acquire all the outstanding shares of LDR for $37 per share in cash, a value of approximately $1 billion.

By acquiring LDR, Zimmer Biomet will increase its presence in the global spine market and in the fast growing cervical disc replacement (CDR) and MIS segments.

“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, President and CEO of Zimmer Biomet.  “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.”

“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," Christophe Lavigne, president and CEO of LDR, said. "We have great respect for the Zimmer Biomet team, who shares our passion for innovation as well as our commitment to patients and providers.  We look forward to working closely with Zimmer Biomet to achieve a seamless transition and create lasting value for all of our stakeholders.”

Zimmer Biomet plans to finance the transaction using cash balances on hand and existing availability under its revolving credit facility and expects to maintain an investment grade profile.