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Zimmer Biomet Holdings, Inc., a global leader in medical technology, and Paragon 28, Inc., a prominent medical device company specializing in foot and ankle orthopedics, have announced a definitive agreement for Zimmer Biomet to acquire all outstanding shares of Paragon 28. 

The acquisition will be made at an upfront price of $13.00 per share in cash, reflecting an equity value of approximately $1.1 billion and an enterprise value of around $1.2 billion. Additionally, Paragon 28 shareholders will receive a non-transferable contingent value right (CVR), which entitles them to up to $1.00 per share in cash if specific revenue targets are met. The CVR will be payable, in whole or in part, if Zimmer Biomet’s fiscal year 2026 net sales exceed $346 million and reach up to $361 million, with CVR payments being calculated proportionally between $0.00 and $1.00 for sales in this range. The boards of directors of both Zimmer Biomet and Paragon 28 have unanimously approved the deal.

Founded in 2010, Paragon 28 offers a broad range of surgical products and systems across all key foot and ankle specialties, including fracture and trauma care, deformity correction, and joint replacement. Since its inception, the company has been dedicated to developing innovative solutions to address unmet needs in the foot and ankle market.

“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, while creating cross-selling opportunities in the rapidly growing ASC space,” said Ivan Tornos, President and Chief Executive Officer of Zimmer Biomet. “Paragon 28’s broad and innovative foot and ankle portfolio, robust product pipeline and dedicated and highly trained sales force, combined with Zimmer Biomet’s global reach and capabilities, will uniquely position us to address the unmet patient needs of this highly complex anatomy.”

“We are incredibly proud of the legacy we have built at Paragon 28 as an industry leader committed to continuously improving the outcomes and experiences of patients suffering from foot and ankle conditions,” said Albert DaCosta, Chairman and CEO of Paragon 28. “Joining Zimmer Biomet is an exciting new chapter for Paragon 28 and an incredible opportunity to advance our mission and continue to deliver groundbreaking solutions in the foot and ankle segment.”

© Zimmer Biomet Holdings, Inc