Zimmer Biomet has begun a deal to acquire all the outstanding shares of common stock of Paragon 28.

The shares will be purchased for an upfront payment of $13 per share in cash, reflecting an about $1.1 billion equity value and an about $1.2 billion enterprise value.

Englewood, Colo.-based Paragon 28 was established in 2010. The company touts a suite of surgical offerings and product systems spanning all major foot and ankle segments. These include fracture and trauma, deformity correction, and joint replacement.

Paragon 28 announced revenue for full-year 2024 in a range of $255.9-$256.2 million, representing 18.2-18.4% growth over the prior fiscal year. Zimmer Biomet expects the transaction to be about 3% dilutive to adjusted earnings per share (EPS) in 2025, about 1% dilutive to 2026 EPS, and accretive to adjusted EPS within two years of the deal’s close.

The transaction will strengthen and expand Zimmer Biomet’s foot and ankle offerings through Paragon 28’s technology platform while bolstering its existing fracture and trauma and joint replacement portfolios. The deal also expedites penetration opportunities in the fast-growing ASC (Ambulatory Surgical Center) space.

The deal is expected to close in the first half of 2025.

“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 CEO 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,” added 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.”

Last month, Zimmer Biomet received U.S. Food and Drug Administration (FDA) 510(k) clearance for its OsseoFit stemless shoulder system for total shoulder replacement.