ZimVie's $730M Take-Private by Archimed: A Strategic Exit and Value Realization Opportunity

The recent announcement that ZimVie Inc. (Nasdaq: ZIMV) is being acquired by Archimed, a healthcare-focused private equity firm, for $19.00 per share in cash—representing a 99% premium to its 90-day volume-weighted average price—has sparked significant investor interest. This $730 million all-cash transaction, which values ZimVie at a compelling 12.7x 2024 adjusted EBITDA, raises critical questions about the rationale behind the premium, the company's growth trajectory, and the implications for shareholders. For investors, this buyout presents a rare opportunity to analyze how private equity is capitalizing on undervalued healthcare assets in a maturing dental implant sector.

Premium Valuation: A Win for Shareholders, but at What Cost?

ZimVie's stock has traded at a discount to its intrinsic value for much of the past two years, despite its strong market position. The 99% premium offered by Archimed reflects a sharp re-rating of the company's fundamentals. For context, ZimVie's 2024 adjusted EBITDA of $60 million (13.3% margin) improved by 220 basis points year-over-year, while its net loss narrowed by 480 basis points to 7.5% of revenue. These metrics, combined with a $290 million reduction in net debt in 2024, demonstrate operational discipline in a challenging macroeconomic environment.

The premium also aligns with broader trends in private equity. Healthcare buyouts have surged in 2025, with firms targeting companies with recurring revenue models and defensible market share. ZimVie's 43% of sales from products launched in the last three years—including the immediate molar implant, which targets a $150 million U.S. market—positions it as a high-growth asset. Archimed's $730 million valuation implies a 12.2x multiple on its 2025 EBITDA guidance ($60–$65 million), which is in line with private equity's typical 10–15x range for mid-cap healthcare plays.

Growth Potential: Digital Dentistry as a Catalyst

ZimVie's strategic pivot to digital dentistry is a key driver of its long-term value. The company's Real Guide software and Implant Concierge solution grew by 39% and 14%, respectively, in 2024, reflecting strong adoption of its digital workflow tools. These innovations are critical in an industry where digital adoption is accelerating—dentists increasingly rely on software to streamline implant placement and improve patient outcomes.

Moreover, ZimVie's full arch business, now 8.5–9% of total revenue, is expanding due to technological improvements that reduce procedural time and costs. With the global dental implant market projected to grow at a 6.9% CAGR to $9.6 billion by 2034, ZimVie's focus on digital solutions and premium products positions it to capture market share. The company's 2025 guidance for 8–17% EBITDA growth further underscores its operational resilience.

Implications for Shareholders: A Strategic Exit or a Missed Opportunity?

Going private offers ZimVie management greater flexibility to pursue long-term initiatives without the scrutiny of quarterly earnings calls. This could accelerate R&D spending on products like the immediate molar implant or expand digital solutions, which are key to differentiating in a crowded market. However, the lack of public market visibility may limit future capital-raising opportunities, which could be a concern if ZimVie's growth slows post-acquisition.

The 40-day go-shop period until August 29, 2025, introduces uncertainty. While Archimed's $19 offer is robust, ZimVie could attract higher bids if the dental implant sector remains attractive to private equity. Shareholders should monitor developments closely, as a superior proposal could unlock even greater value.

Investment Thesis: A Premium with Long-Term Upside

For long-term investors, this buyout represents a strategic exit for ZimVie's public shareholders. The $19 offer is a 38% discount to the $29.50 price paid in the 2021 private placement, but it reflects a realistic valuation given the company's debt reduction and operational improvements. With the dental implant market expanding and ZimVie's digital tools gaining traction, the $730 million valuation could be conservative if Archimed executes its growth plan effectively.

However, the go-shop period remains a wildcard. If ZimVie fails to attract a better offer, the $19 price becomes a compelling exit point. For now, the deal appears to balance risk and reward, offering shareholders a premium while positioning the company for a strategic pivot under Archimed's ownership.

Conclusion: A Win-Win for Stakeholders

ZimVie's take-private by Archimed is a win for shareholders seeking a premium and for the company, which gains the flexibility to focus on innovation. While the dental implant market is competitive, ZimVie's digital-first strategy and cost discipline position it to thrive under private ownership. Investors should consider this a clean exit opportunity, with the caveat that the go-shop period could still yield a higher offer. For now, the $19 per share price is a reasonable valuation for a company with strong growth tailwinds and a proven ability to adapt in a dynamic sector.