Dental implant maker ZimVie doubles on news of its acquisition by private equity firm

Quotes for small-cap dental implant maker ZimVie soared more than 122% yesterday, July 21, reaching a one-year high. The company announced that it will be acquired, at a significant premium, by investment firm Archimed. For ZimVie shareholders, this is a compelling exit opportunity, Noble Capital Markets reckons. 

ZimVie soared more than 122% yesterday on the Nasdaq to $18.76 per share. This marked its highest close since August 1, 2024. The stock has extended the gains into trading this morning.

This is how the market reacted to the news of ZimVie's acquisition by Archimed, a healthcare-focused investment firm. The deal values the dental implant maker at about $730 million, or $19 per share, according to the press release. This is nearly double its 90-day volume-weighted average price. 

The deal is expected to close by the end of the year and has already been approved by ZimVie's board, but it must still be approved by shareholders and regulators.

For ZimVie shareholders, the 99% premium represents a compelling exit, "especially as the company faced headwinds in public markets," Noble argues. 

For the company itself, Noble sees the deal, assuming it goes through, providing strategic flexibility and financial backing often difficult to realize amid quarterly earnings and shareholder pressure. 

Archimed's interest in ZimVie, Noble continues, is an illustration of private equity firms' renewed appetite for small- and mid-cap healthcare players that have proven tech, scalable platforms, and room for international expansion. Investors may find increasing value in companies that combine specialized solutions with long-term demand before they are targeted by institutional buyers, Noble concludes. 

ZimVie is up by a third year to date. The most common rating on Wall Street for the stock is "hold" (two analysts out of four), according to MarketWatch. There is one "buy" and one "sell" as well. The average target price of $11.67 per share is below current quotes.

The AI translation of this story was reviewed by a human editor.