Zimmer Biomet has entered into a definitive agreement to acquire Paragon 28, a medical device company specializing in foot and ankle orthopedic solutions, for approximately $1.2 billion.

The transaction includes an upfront cash payment of $13.00 per share, valuing Paragon 28’s equity at roughly $1.1 billion. Shareholders may receive an additional $1.00 per share if certain revenue targets are met in 2026.

The boards of both companies have unanimously approved the deal, which is expected to close in the first half of 2025, pending regulatory approvals and a shareholder vote.
Paragon 28, founded in 2010 and based in Colorado, focuses on surgical solutions for foot and ankle conditions, including fracture repair, deformity correction, and joint replacement. The acquisition will expand Warsaw, Indiana-based Zimmer Biomet’s presence in a growing segment of the musculoskeletal market, estimated to be worth $5 billion.

"This proposed transaction further diversifies Zimmer Biomet's portfolio outside of core orthopedics and positions us well in one of the highest growth specialized segments in musculoskeletal care," said Ivan Tornos, president and CEO of Zimmer Biomet.

Paragon 28 CEO Albert DaCosta said the acquisition represents an "exciting new chapter" for the company and an opportunity to continue delivering "groundbreaking solutions in the foot and ankle segment."

Zimmer Biomet plans to fund the purchase through a mix of cash and debt financing. The company expects the deal to be slightly dilutive to earnings in 2025 and 2026 but accretive within 24 months of closing. The financial impact will be discussed during Zimmer Biomet’s earnings call on Feb. 6.

Goldman Sachs & Co. LLC is advising Zimmer Biomet on the deal, with legal counsel from Hogan Lovells US LLP. Piper Sandler & Co. is acting as financial advisor to Paragon 28, with legal representation from Cravath, Swaine & Moore LLP.

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