Zimmer Biomet has completed the previously announced acquisition of Paragon 28 for an enterprise value of approximately $1.2bn.
Announced in January, the acquisition is set to widen and bolster Zimmer Biomet’s offerings in the foot and ankle orthopaedic area.
Leveraging Paragon 28's technology platform, Zimmer Biomet aims to enhance its current portfolios of fracture and trauma, and joint replacement.
The transaction creates a dedicated sales channel for the foot and ankle products within the company, utilising Paragon 28's sales organisation.
Additionally, the acquisition complements Zimmer Biomet’s global presence and current infrastructure, integrating Paragon 28's portfolio to expedite growth both in the US and internationally.
It is expected to enhance Zimmer Biomet's weighted average market growth rate (WAMGR) within the approximately $5bn foot and ankle industry, which is rising at a high single-digit rate.
The deal also accelerates Zimmer Biomet's entry into the rapidly expanding ambulatory surgery centre (ASC) field.
The completion of the acquisition occurred yesterday (21 April), following the agreement and plan of merger established in January 2025.
During the acquisition time, Paragon 28's outstanding common shares were cancelled automatically, retired and converted into a right to obtain $13.00 in cash per share, along with a non-tradeable contingent value right (CVR).
This CVR entitles the holder to obtain up to an additional $1.00 per share in cash on meeting specific revenue milestones.
Following the acquisition, Paragon 28 has become Zimmer Biomet’s wholly owned subsidiary.
Zimmer Biomet CEO and president Ivan Tornos said: "We look forward to building on the strong foundation set by Albert DaCosta and the Paragon 28 team and are excited to officially welcome them to the Zimmer Biomet family.
“This combination expands our leadership in the foot and ankle segment, one of the highest growth specialities in musculoskeletal care.”
As a result of the acquisition, Paragon 28 shares ceased trading on the New York Stock Exchange before the market opened on 21 April and are set to be delisted.
Last month, the US Food and Drug Administration (FDA) granted 510(k) clearance to Zimmer Biomet’s new revision knee implant component, Persona Revision SoluTion Femur.
