Zimmer Biomet Holdings Inc. (NYSE: ZBH) agreed to buy LDR Holding Corp. (NYSE: ZBH) for about $1 billion in cash to add surgical technologies for the treatment of patients with spine disorders.

The $37-a-share offer has been approved by both boards, the companies said in a statement Tuesday. That represents a 64 percent premium to LDR’s Monday closing price of $22.58. LDR’s shares have lost 49 percent in the last 12 months.

Medical device manufacturers have been receiving robust buyer interest. Abbott Laboratories (NYSE: ABT) agreed to buy St. Jude Medical Inc. (NYSE: STJ); Apax Partners is purchasing the respiratory business of Becton, Dickinson and Co.; Stryker Corp. (NYSE: SYK) is buying the Y-Wire and Tiger Jamshidi Needle products from SafeWire.

Zimmer, with a market valuation of $24.2 billion, is one of the U.S.’s biggest manufacturers of replacement hips and knees and other reconstructive and orthopedic devices. LDR had 2015 sales of $164.5 million, most of which came from spinal devices that are used in disc replacements and spinal fusions. Zimmer estimates the size of the spinal device market at around $10 billion a year.

The transaction is expected to close in the third quarter, and Zimmer said the deal will start adding to its adjusted earnings after 2017.

Goldman Sachs Group Inc. (NYSE: GS) served as Zimmer’s financial adviser, and White & Case LLP as legal adviser. BofA Merrill Lynch was LDR’s financial adviser and Andrews Kurth LLP was legal adviser.


-- Additional Reporting By Mergers & Acquisitions' Demitri Diakantonis

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