Zimmer Biomet ($ZBH) flexed some of its cash-on-hand muscle and has entered into the growing surgical robotics arena with the purchase of France’s Medtech for an estimated $77 million.
According to an SEC filing, Zimmer Biomet agreed to buy a little more than 1.4 million shares of the French medical robotics company at a price of €50.00 ($55) per share, with convertible bonds priced at €50.03 ($55.60) each and the warrants at a price of €17.17 ($18.90) each.
Wall Street analysts have estimated the orthopedic giant’s pockets to be as deep as $5 billion in cash it can use in the next few years following its $13.4 billion acquisition of Biomet just a little over a year ago.
The deal for Medtech is seen as Zimmer’s entry into the surgical robotics field that includes players such as Intuitive Surgical ($ISRG) and Stryker ($SYK). Johnson & Johnson ($JNJ) and Alphabet ($GOOG) have partnered to create new robotic-assisted surgical platforms as well, and the U.K.’s Cambridge Medical Robotics just announced $20.3 million in Series A funding it plans to use to develop its robotic surgical technology.
Medtech’s product portfolio includes two robots for minimally invasive brain and spine procedures dubbed the ROSA Brain and the ROSA Spine. The ROSA Brain received FDA approval in 2009 and the ROSA Spine a CE mark in 2014.