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ENGLEWOOD, Colo. - Paragon 28, Inc. (NYSE: FNA), a medical device company specializing in foot and ankle orthopedics, has announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act), a significant step forward in its acquisition by Zimmer Biomet Holdings, Inc. (NYSE: ZBH). This development satisfies one of the key conditions for the merger to proceed. The announcement comes as Paragon 28’s stock trades near its 52-week high of $13.13, having delivered an impressive 74% return over the past six months, according to InvestingPro data.
The transaction is still subject to other customary closing conditions, including Paragon 28’s stockholder approval and additional regulatory clearances. Both companies anticipate the merger to be completed in the first half of 2025, contingent upon these conditions being met.
Paragon 28, headquartered in Englewood, Colorado, is recognized for its exclusive focus on foot and ankle orthopedic products. The company’s portfolio includes solutions for fracture fixation, forefoot and ankle reconstruction, flatfoot conditions, and Charcot foot, among other ailments. Their products are designed to enhance patient outcomes and simplify surgical procedures. The company has demonstrated strong growth with an 18% year-over-year revenue increase and maintains a healthy current ratio of 3.51, indicating strong liquidity. InvestingPro analysis reveals 11 additional key insights about the company’s financial health and market position.
The press release also contained forward-looking statements regarding the anticipated benefits and timing of the proposed merger. These statements are subject to risks and uncertainties that could cause actual results to differ materially. The risks include the possibility that the merger may not close within the anticipated timeframe or at all if certain conditions are not met, including stockholder approval and the risk of competing acquisition proposals. For deeper insights into Paragon 28’s valuation and comprehensive financial analysis, investors can access the detailed Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
Investors and security holders of Paragon 28 are advised to read the preliminary and definitive proxy statements related to the proposed transaction, which contain important information about the merger. These documents will be available on the U.S. Securities and Exchange Commission’s website and on Paragon 28’s website.
This news is based on a press release statement and contains statements that are forward-looking in nature, involving substantial risks and uncertainties. The information reflects the current expectations of Paragon 28’s management and is not a guarantee of future performance.
In other recent news, Paragon 28, Inc. has announced preliminary unaudited financial results for the fourth quarter and full year ending December 31, 2024, with expected fourth-quarter revenue between $71.5 million and $71.8 million, marking an 18% to 18.5% increase from the previous year. Full-year revenue is projected to be between $255.9 million and $256.2 million, reflecting an 18.2% to 18.4% growth compared to 2023. This comes amid the announcement of its acquisition by Zimmer Biomet Holdings, Inc., valued at approximately $1.2 billion, where Paragon 28 shareholders will receive $13 per share plus a contingent value right of up to $1 per share if certain revenue targets are met.
Stephens analysts downgraded Paragon 28’s stock from Overweight to Equal Weight, aligning with the acquisition price, while Needham analysts also downgraded the stock from Buy to Hold, citing limited potential for a higher acquisition offer. Despite the downgrades, Needham had previously reaffirmed a Buy rating based on Paragon 28’s revenue estimates, which surpassed consensus expectations. The acquisition deal is structured to include both an upfront payment and additional contingent value, indicating potential further financial benefits for shareholders if revenue targets are achieved post-acquisition.
Analysts note that the acquisition price represents a premium over the stock’s closing price at the time of the announcement, although it is below typical sector premiums. Paragon 28’s recent financial performance, including achieving EBITDA positivity, has made it an attractive acquisition target for Zimmer Biomet, aiming to bolster its position in the orthopedic devices market. Both companies have a relatively low market share in the foot and ankle sector, and analysts do not anticipate antitrust issues from the merger.
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