Zimmer (UNKNOWN:ZMH.DL) shocked the market yesterday, but it wasn't its regularly scheduled earnings that sent shares soaring 12% -- it was a surprise takeover.

Zimmer is scooping up fellow orthopedic company Biomet for $13.4 billion, before it priced its public offering. Given Zimmer's market cap of $17.3 billion this is essentially a merger of equals. Investors won't have to worry about any culture clashes; both company's are based out of Warsaw, Indiana, a town of only 15,000. However, this small-town collaboration will be a big-time player -- it will have the combined scale to surpass Styker (NYSE:SYK), and compete more effectively with Johnson & Johnson.

In this episode of Market Check-Up, the Motley Fool's health-care focused investing show, analysts David Williamson and Michael Douglass discuss the details of the deal and why this is a huge win for Zimmer investors.


David Williamson has no position in any stocks mentioned. Michael Douglass has no position in any stocks mentioned. The Motley Fool owns shares of Zimmer Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.