Zimmer Biomet has signed a definitive agreement to acquire US-based medical device company Embody for $155m.

Under the deal, Embody will also receive up to another $120m based on the achievement of future regulatory and commercial milestones within three years.

Embody CEO Jeff Conroy said: “We are excited for the potential to create value for patients and customers in new ways and believe the combination of Embody’s innovative products and Zimmer Biomet‘s established portfolio will bring new solutions to the market that could redefine the standard of care.”

As part of the transaction, Zimmer will acquire Embody’s complete portfolio of collagen-based biointegrative solutions.

These solutions are used for healing orthopaedic soft tissue injuries and include the TAPESTRY biointegrative implant for tendon healing and the TAPESTRYRC arthroscopic implant system for rotator cuff repair.

Zimmer Biomet chairman, president and CEO Bryan Hanson said: “Embody’s differentiated products and innovative pipeline in the area of sports medicine support our continued focus on and investment in high-growth markets and underscores our commitment to bringing meaningful new advances to patients and surgeons.

“The planned acquisition of Embody is an important step in the ongoing transformation of ZB and the execution of our strategic priority to increase long-term growth and drive value creation.”

Subject to customary closing conditions, the deal is anticipated to be completed next month.

Zimmer Biomet currently has operations in more than 25 countries as well as sales in over 100 countries.

Last November, Zimmer Biomet secured received 510(k) clearance from the US Food and Drug Administration (FDA) for its Persona OsseoTi Keel Tibia.