ArchiMed to Acquire Dental Devicemaker ZimVie in $730M Deal

In a significant move within the medical device industry, ZimVie, a dental equipment manufacturer, has agreed to be acquired by healthcare investment firm ArchiMed for approximately $730 million. This acquisition marks the latest development in ZimVie's corporate journey, which began as a spinout from orthopedics firm Zimmer Biomet in 2022.

Deal Structure and Financial Details

The all-cash transaction values ZimVie at $19 per share, representing a substantial 99% premium over the company's 90-day volume-weighted average price of $9.57. The announcement led to a dramatic surge in ZimVie's stock price, which more than doubled to $18.76 at market close on Monday.

ArchiMed, a Lyon, France-based investment firm, will take ZimVie private upon completion of the deal. The acquisition is expected to close by the end of 2025, subject to shareholder and regulatory approvals.

Strategic Implications and Market Position

ZimVie CEO Vafa Jamali expressed optimism about the deal, stating that it would provide "strategic and financial backing to expand our innovative dental technology to more patients globally." This acquisition follows ZimVie's recent divestiture of its spine business to H.I.G. Capital for $375 million, allowing the company to focus exclusively on dental devices.

The dental market has shown both challenges and opportunities for ZimVie. The company reported revenue of $449.7 million for its continuing operations in 2024, representing a 1.6% decrease year over year. In the first quarter of 2025, ZimVie posted $112 million in sales, down 5.2% compared to the same period in 2024. Despite these figures, the company projects full-year 2025 revenue between $445 million and $460 million, indicating potential for slight growth.

Industry Trends and Future Outlook

This acquisition comes at a time when experts anticipate an increase in medtech mergers and acquisitions, following a period of slower activity. The dental device market, in particular, has seen growing interest from investors and larger medical technology firms.

ArchiMed's managing partner, André-Michel Ballester, expressed confidence in ZimVie's potential, stating, "The company has strong fundamentals and compelling growth potential, and we look forward to supporting its next chapter."

As part of the agreement, ZimVie has a 40-day "shop" period until August 29, during which it can consider other proposals. This provision leaves the door open for potential competing offers, although the company has stated it does not plan to make further announcements unless a stronger proposal emerges.