ZimVie Inc., a company that makes dental implants and other medical devices, just announced that it’s being sold to ARCHIMED, a healthcare-focused investment firm. The deal is valued at around $730 million, and investors were excited, the company’s stock price soared by 122% shortly after the news came out.
This means that anyone who held shares in ZimVie suddenly saw their investment more than double in value in just one day.
Under the terms of the deal, ZimVie shareholders will get $19.00 in cash per share. That’s almost twice as much as what the stock had been trading at on average over the past 90 days, which was $9.57. This large gap is known as a premium, and it’s often used to entice shareholders to approve a sale.
ZimVie’s Board of Directors, the people in charge of overseeing the company, all agreed to the deal, saying it reflects the hard work that’s gone into building the business. CEO and Chairman Vafa Jamali called it a “new chapter” for the company, highlighting how much progress the company has made in recent years.
Once this buyout is finalised, which is expected to happen by the end of 2025, ZimVie will no longer be a publicly traded company. That means its stock will be removed from the NASDAQ stock exchange, and regular investors won’t be able to buy or sell it like they do now. Instead, it will become a private company owned by ARCHIMED.
However, there’s still a chance that a different company could come in with a better offer. As part of the deal, ZimVie has a 40-day “go-shop” period that lasts until August 29, 2025. During this time, the company can actively look for other potential buyers and accept a different offer if it benefits shareholders more.
In terms of the business side, nothing is expected to change immediately. ZimVie will continue running as usual until the sale is finalised. The deal is not dependent on ARCHIMED getting outside funding, which means it’s not at risk of falling through due to financing problems, a detail that can sometimes delay or cancel similar deals.
ZimVie has hired Centerview Partners, a well-known investment advisory firm, to guide them through the process. ARCHIMED is being advised by UBS Investment Bank, one of the largest global financial institutions.
This acquisition is a major development for ZimVie, a relatively young company that was spun off from Zimmer Biomet in 2022. Despite facing tough competition and market pressures, especially in the dental and spine medical device sectors, the company is now being valued at a significant premium, a sign that investors and buyers see long-term potential in its technology and products.
For current shareholders, the deal offers a clear cash payout. For the company, it opens the door to operate with more flexibility and potentially make long-term investments without the constant pressure of meeting public market expectations.