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Investing.com-- Zimmer Biomet Holdings Inc (NYSE:ZBH) said on Tuesday it will acquire medical devices firm Paragon 28 Inc (NYSE:FNA) for around $1.1 billion, building the company’s portfolio beyond its core orthopedics segment.
Zimmer will pay Paragon shareholders $13.0 in cash for each share in the company- an 8% premium to Paragon’s Tuesday close. Paragon shareholders will also receive a commitment of up to $1 in cash if the company meets certain revenue milestones.
Paragon’s shares surged nearly 10% to $13.19 in aftermarket trade, after the deal was announced. Zimmer rose 2.8% to $115.0.
The deal will give Zimmer access to Paragaon’s portfolio of medical devices and equipment, which specialize chiefly in ailments related to the foot and ankle.
Both Zimmer and Paragon’s boards approved the deal, the two companies said in a joint statement.