Shares of LDR Holding Corp. (NASDAQ: LDRH) skyrocketed in Tuesday’s session following the definitive agreement for Zimmer Biomet Holdings Inc. (NYSE: ZBH) to acquire the company. Both boards of directors have agreed, and Zimmer Biomet will commence a tender offer to acquire all outstanding shares of LDR for $37 per share in cash.
Overall, the entire transaction is valued up to roughly $1 billion. The deal is expected to close in the third quarter of 2016, but it is still subject to customary closing conditions. Goldman Sachs and Merrill Lynch are acting as financial advisors to Zimmer Biomet and LDR, respectively.
In order to fund the offering, the Zimmer Biomet board plans to issue $750 million in senior unsecured notes, which will be used to repay the credit facility following the transaction. Zimmer Biomet has a market cap of nearly $24 billion.
