WARSAW, Ind. – The news that orthopedic device maker Zimmer is buying privately-held Biomet for about $13.35 billion had a lifting effect this morning on company stock.
Even though it is the buyer, Zimmer shares rose more than 17 percent in morning trading Thursday.
Shares of companies that make an acquisition often fall when they announce a deal because of the costs. A rise suggests some investors like the deal.
Zimmer Inc. will pay $10.35 billion in cash and issue shares of its common stock valued at $3 billion to Biomet Inc.'s equity holders. The companies said that the deal's total value also includes the assumption of an unspecified amount of debt.
Zimmer's stock gained $15.68, or 17.1 percent, to $107.08 in morning trading. Its shares are up 41 percent over the past year.