WARSAW, Ind. (AP) — Orthopedic device maker Zimmer is buying privately-held Biomet for about $13.35 billion in a move aimed at helping expand its product offerings and services.
Even though it is the buyer, Zimmer shares rose more than 17 percent in morning trading Thursday. Shares of companies that make an acquisition often fall when they announce a deal because of the costs. A rise suggests some investors like the deal.
Zimmer Inc. will pay $10.35 billion in cash and issue shares of its common stock valued at $3 billion to Biomet Inc.'s equity holders. The companies said that the deal's total value also includes the assumption of an unspecified amount of debt.
"The transaction positions the combined company as a leader in the musculoskeletal industry with a broad portfolio of products, technologies and services, enabling us to help shape how solutions are developed and delivered," Zimmer President and CEO David Dvorak said in a statement.
Biomet President and CEO Jeffrey Binder said that the deal will prepare Biomet "to compete as a stronger entity in the medical device industry in the future."