NEW YORK (TheStreet) -- Shares of LDR Holding (LDRH) stock closed up by 63.82% to $36.99 on heavy trading volume on Tuesday, after Zimmer Biomet (ZBH) offered to acquire its fellow medical device maker for roughly $1 billion.
Zimmer bid $37 a share in cash for each of the medical-device company's shares outstanding, representing a 64% premium to Monday's close.
The transaction is expected to close in the 2016 third quarter, and Zimmer estimates that the deal will be accretive to adjusted earnings after 2017.
LDR specializes in designing surgical technologies for the treatment of patients suffering from spine disorders, while Zimmer Biomet produces products ranging from orthopedic reconstructive devices to dental implants.
After the deal, Zimmer's share of the spine market will likely jump to 7% from 5% and the company should move to number 5 from number 6 within the sector, according to Larry Biegelsen, a Wells Fargo Securities analyst, Bloomberg reports.
About 27.97 million shares of LDR have been traded so far today, well above its average trading volume of roughly 402,368 shares per day.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
LDR's weaknesses include its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: LDRH
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.