Zimmer Biomet to Acquire Paragon 28 for $1.1 Billion, Expanding Orthopedic Portfolio

Zimmer Biomet announced plans to acquire medical device company Paragon 28 for $1.1 billion, enhancing its range of orthopedic surgical devices. This strategic move strengthens Zimmer’s offerings in fracture, trauma, and joint replacement while adding Paragon’s specialized implants and equipment for foot and ankle treatments.

Under the agreement, Zimmer Biomet will pay $13.00 per share in cash, an 8.3% premium over Paragon’s latest closing price. Paragon stockholders are also entitled to a non-tradable contingent value right of up to $1 per share based on future milestones, potentially increasing the deal’s total value to $1.2 billion. Following the news, Paragon shares rose 9.3% in extended trading.

Zimmer Biomet plans to finance the acquisition through cash and debt, expecting the transaction to close in the first half of 2025, pending regulatory approvals. The company anticipates the deal will be 3% dilutive to its adjusted profit in 2025.

This acquisition highlights Zimmer Biomet’s commitment to expanding its market reach and addressing growing demand in orthopedic solutions, particularly in high-growth areas like foot and ankle surgery. The deal aligns with its strategy to strengthen core businesses and diversify its product portfolio, ensuring long-term growth.

By integrating Paragon 28’s expertise and innovative products, Zimmer Biomet is positioned to solidify its leadership in the orthopedic device market while delivering comprehensive solutions to healthcare providers and patients worldwide.