Zimmer Biomet Holdings, Inc. announced that it entered into a definitive agreement to acquire all outstanding shares of common stock of Paragon 28, Inc. for an upfront payment of $13 per share in cash. This corresponds to an equity value of approximately $1.1 billion and an enterprise value of approximately $1.2 billion.
Based in Englewood, Colorado, Paragon 28 is a medical device company exclusively focused on the foot and ankle orthopedic segment and is dedicated to improving patient lives. The company was established in 2010 to address unmet and under-served needs of the foot and ankle community. Paragon 28 provides orthopedic solutions, procedural approaches and instrumentation that cover a wide range of foot and ankle ailments including fracture fixation, forefoot, ankle, progressive collapsing foot deformity or flatfoot, Charcot foot and orthobiologics.
Zimmer Biomet makes and markets musculoskeletal products that help treat patients suffering from disorders of or injuries to bones, joints, or supporting soft tissues. The company has operations in 25 countries and sells in more than 100 countries. According to its financial results report, it generated $7.39 billion in revenue for the full year of 2023.
The proposed transaction is expected to immediately accelerate Zimmer Biomet’s revenue growth. Zimmer Biomet plans to fund the proposed transaction through a combination of cash on the balance sheet and other available debt financing sources. The transaction is anticipated to close in the first half of 2025.
Goldman Sachs is serving as exclusive financial advisor to Zimmer Biomet and Hogan Lovells is serving as legal advisor. Piper Sandler is serving as exclusive financial advisor to Paragon 28 and Cravath, Swaine & Moore LLP is serving as legal advisor.
According to data in the LevinPro HC database, this merger marks the eighth Medical Devices transaction of 2025. Throughout 2024, there were 88 Medical Devices acquisitions announced. This is also Zimmer Biomet’s first acquisition of the year. In August 2024, Zimmer Biomet acquired OrthoGrid Systems for an undisclosed price.
