Zimmer Biomet To Lead Orthopedic Robotics With Monogram's AI Tech

Zimmer Biomet Holdings, Inc. ZBH on Monday agreed to acquire Monogram Technologies Inc. MGRM for an upfront payment of $4.04 per share, corresponding to an equity value of approximately $177 million and an enterprise value of approximately $168 million.

Monogram common stockholders will also receive a non-tradeable contingent value right (CVR) entitling the holder to receive up to $12.37 per share of common stock in cash if certain product development, regulatory, and revenue milestones are achieved through 2030.

Monogram’s semi- and fully autonomous robotic technologies are expected to add new and differentiated capabilities to expand Zimmer Biomet’s flagship ROSA Robotics platform and broad suite of navigation and enabling technologies.

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Monogram has developed a CT-based, semi-autonomous, AI-navigated total knee arthroplasty (TKA) robotic technology, which received FDA 510(k) clearance in March 2025 and is expected to be commercialized with Zimmer Biomet implants in early 2027.

Additionally, Monogram is developing a fully autonomous version of the technology that has the potential to significantly increase safety, efficiency, and outcomes, as well as have additional applications beyond TKA.

Upon closing the proposed transaction, Zimmer Biomet expects to have a clear pathway to become the first and only orthopedics company to offer a fully autonomous surgical robot.

“Monogram’s technology is a major leap forward, demonstrating our commitment to becoming the boldest and broadest innovator in surgical robotics and navigation,” said Ivan Tornos, Chairman, President, and Chief Executive Officer of Zimmer Biomet. “…Zimmer Biomet has the potential to become the first company to deliver fully autonomous capabilities and redefine both the standard of care and the future of orthopedic surgery.”

The ROSA platform, the cornerstone of Zimmer Biomet’s robotics offering, is rapidly approaching 2,000 installations worldwide.

Zimmer Biomet is investing in an R&D pipeline that will produce several new products and software applications between now and 2027.

This includes ROSA Knee with OptimiZe, which has been submitted to the FDA, and 510(k) clearance is anticipated later this year, as well as ROSA Posterior Hip and the full commercial launch of ROSA Shoulder.

Zimmer Biomet plans to fund the proposed transaction using cash on the balance sheet and other available debt financing sources.

Zimmer Biomet believes this proposed transaction and the CVR structure are compelling from a strategic and financial standpoint. The acquisition of Monogram further strengthens Zimmer Biomet’s robotics capabilities.

Zimmer Biomet expects the acquisition will contribute to revenue growth in 2027 and beyond by improving the company’s robotic knee adoption in the U.S., increasing the share of wallet through reaching new customers with a broader product range, and expanding the company’s industry-leading global knee offerings.

Zimmer Biomet anticipates the acquisition will be neutral to adjusted earnings per share in 2025, 2026, and 2027 and accretive in 2028 and beyond.

Additionally, the transaction is projected to generate a high-single-digit return on invested capital (ROIC) by year five, with an increasing contribution thereafter.

Price Action: MGRM stock is up 60.2% at $5.27, and ZBH stock is up 0.09% at $93.87 at last check Monday.

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