Zimmer Biomet Snaps Up Paragon 28 for $1.1B, Expanding Foot & Ankle Portfolio
January 31, 2025
by
Ricky Zipp

Zimmer Biomet has announced its acquisition of Paragon 28, a company specializing in foot and ankle implants, for approximately $1.1 billion. The deal, expected to close in the first half of 2025, allows Zimmer to expand beyond core orthopedics into a specialized, high-growth market segment. Paragon 28 has been rapidly growing, with projected 2024 sales reaching $256.2 million—a nearly 20% increase from the previous year. Analysts were surprised by the relatively small premium Zimmer is paying, but they acknowledge Paragon’s strong portfolio of innovative products, training programs, and customer service as key assets that differentiate it from competitors.
This acquisition is part of a broader trend of mergers and acquisitions in the orthopedics space, including Stryker’s recent divestment of its spinal implant business and its planned $4.9 billion acquisition of Inari Medical. With Paragon 28, Zimmer aims to create cross-selling opportunities in the ambulatory surgery center market, estimated to be worth $5 billion. Analysts expect Zimmer to continue making strategic acquisitions, potentially in areas such as AI, robotics, and sports medicine, as it looks to further strengthen its position in the medtech industry.