LDR Holding Corp (NASDAQ:LDRH) Shares Surge 63.82% on Acquisition Offer


LDR Holding Corp (NASDAQ:LDRH) shares scored an additional 0.05% to $37.01 in after hours trading, underscoring the strong bullish momentum. The company received an acquisition offer from Zimmer Biomet Holdings to the tune of $1 billion in cash.

This puts the share value of LDR Holding Corp at $37, representing a 68% premium from Monday’s closing price. The boards of directors for both LDR Holding Corp and Zimmer Biomet Holdings have already approved the transaction, pending regulatory and shareholder approval. Zimmer Biomet will be funding this transaction through cash on hand and existing credit facilities, with the deal expected to close by the third quarter of this year.

This highly strategic and complementary transaction will enhance Zimmer Biomet’s innovation leadership in musculoskeletal healthcare by adding a premier spine platform to our portfolio of solutions,” said Zimmer Biomet CEO David Dvorak.

For LDR Holding’s CEO Christophe Lavigne, this will further the company’s commitment to improving spinal care by providing patients with greater access to their innovative product offerings. He acknowledged that the company shares Zimmer Biomet’s passion for innovation and commitment to patients and providers.

LDR Holding Corp shares have been trading in a 52-week range of $16.33 to $47.12 so there could still be some upside for the stock once the deal closes and produces more opportunities for the company. For Zimmer Biomet, this deal isn’t likely to weigh on the company’s earnings guidance for the year even as it plans to issue $750 million worth of notes to repay credit facilities.

LDR Holding Corp is a medical device company that focuses on  designing and commercializing surgical technologies for the treatment of patients suffering from spine disorders. Its primary products are based on its VerteBRIDGE fusion and Mobi non-fusion platforms, both of which are designed for applications in the cervical and lumbar spine.


DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital.