Zimmer announce agreement to acquire ORTHOsoft

Zimmer has announced an agreement to make an offer for the acquisition of all outstanding common shares in ORTHOsoft for the price of CDN$1.10 (0.52 pounds) per share.

The total purchase price – which excludes the 12.4 per cent of the company already owned by Zimmer – totals around CDN$50 million.

Zimmer reports that this acquisition will be funded from operating cash flow at the company, with the deal expected to be completed during the fourth quarter of this year.

The firm forecasts an approximate $0.01 (0.005 pounds) dilutive to adjusted earnings per share in the fourth quarter of 2007 as a result of this transaction, with this rising to $0.03 in 2008, with the value then growing gradually.

ORTHOsoft was founded in 1995 and is a developer of computerised systems, medical software and instruments for the improvement of accuracy in hip, knee and spine implants.

David Dvorak, president and chief executive officer of Zimmer, said: “We look forward to welcoming ORTHOsoft’s leadership team and skilled employees to the Zimmer family.”

He added that the firm had earned the respect of surgeons in Europe and the US, while the deal will boost Zimmer’s SmartTools strategic programme and aid vertical integration of its computer assisted solutions.

In January 2007, financial analysts reported rumours that Medtronic may place a bid for Zimmer during 2007, with the potential for the establishment of the largest orthopaedic medical device company in the world.