Zimmer Biomet Holdings, a medtech company, has entered into a definitive agreement to acquire Paragon 28, a medical device company specializing in foot and ankle orthopedic solutions. Under the agreement, Zimmer Biomet will purchase all outstanding shares of Paragon 28’s common stock for $13.00 per share in cash, valuing the deal at approximately $1.1 billion in equity and $1.2 billion in enterprise value. Shareholders will also receive a contingent value right of up to $1.00 per share if certain revenue milestones are met in Zimmer Biomet’s fiscal year 2026. The transaction, unanimously approved by both companies’ boards, is expected to close in the first half of 2025, subject to regulatory and shareholder approvals. Zimmer Biomet plans to finance the acquisition through cash on hand and available debt financing.
Paragon 28’s extensive portfolio includes solutions for fracture fixation, joint replacement, and deformity correction, complementing Zimmer Biomet’s existing offerings. The proposed transaction enhances Zimmer Biomet’s foot and ankle portfolio with Paragon 28’s technology, supporting global expansion and accelerating growth in the $5 billion industry. It also strengthens market penetration, particularly in ambulatory surgery centers. Financial advisors for the deal include Goldman Sachs & Co. LLC for Zimmer Biomet and Piper Sandler & Co. for Paragon 28.
