US-based medical device company Zimmer Biomet has received approval from its board of directors for a definitive agreement to acquire France-based LDR designs for an approximately value of $1bn.

Under the definitive agreement, Zimmer Biomet is now authorised to float a tender offering to acquire LDR’s outstanding shares, each valued at $37 in an all-cash transaction.

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Subject to customary closing conditions, the potential transaction is expected to be completed at the end of this year.

"We are confident that the combination of Zimmer Biomet’s Spine division and LDR will create a spine company with the scale, talent and technology portfolio to become a leader in the $10bn global spine market."

The acquisition is expected to add to Zimmer Biomet’s Spine business portfolio with an addition of LDR’s Mobi-C cervical disc replacement device and MIVo portfolio to assist lumbar and cervical fusion procedures.

The consolidation of products of both Zimmer Biomet and LDR will increase the former’s footprint in the spine portfolio market.

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Zimmer Biomet president and CEO David Dvorak said: "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.

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"The talented LDR team uniquely shares our deeply held commitment to innovating in a manner that restores mobility and alleviates pain for patients around the world, and we look forward to welcoming them to Zimmer Biomet.

"We are confident that the combination of Zimmer Biomet’s Spine division and LDR will create a spine company with the scale, talent and technology portfolio to become a leader in the $10bn global spine market."

The transaction is expected to have no effect on Zimmer Biomet’s adjusted diluted earnings per share (EPS) for the next year and will increase the EPS from the following years.

After the acquisition, LDR will be included in Zimmer Biomet’s Spine and CMF category and will be headed by Zimmer Biomet Group Spine, CMF and Thoracic, and Dental president Adam Johnson.

In this transaction, Zimmer is being served by Goldman Sachs as the financial advisor and White & Case as the legal advisor, while LDR is being served by BofA Merrill Lynch as the financial advisor and Andrews Kurth as the legal advisor.