Orthopedic device developer Zimmer Holdings of Warsaw, Ind., said it has reached an agreement to make an offer to acquire all outstanding shares of Montreal-based Orthosoft, a manufacturer of image-guided computerized navigation systems for orthopedic surgery. Zimmer has offered Canadian $1.10 ($1.05, U.S.) per share for Orthosoft.
The total purchase price, excluding the 12.4 percent of outstanding Orthosoft common stock currently held by a Zimmer subsidiary, is approximately $50 million ($47.6 million). According to Zimmer, the transaction will be funded out of operating cash flow and is expected to be completed in the fourth quarter this year.
The board of Orthosoft has unanimously recommended that its shareholders accept the offer.