Zimmer Biomet Holdings (ZBH) said Tuesday it plans to acquire all outstanding Paragon 28 (FNA) shares for $13 per share in cash, at a total equity value of about $1.1 billion.

The company said the deal also includes a contingent value right, allowing Paragon 28 shareholders to receive up to $1 per share in cash if specific revenue milestones are met during Zimmer Biomet's fiscal year 2026.

The medical device maker said the acquisition, which both companies' boards have unanimously approved, is expected to accelerate its revenue growth.

Paragon 28 has projected 2024 revenue of between $255.9 million to $256.2 million, or 18.2% to 18.4% growth year-over-year.

Zimmer Biomet said it plans to finance the deal, which is expected to close in H1 2025, using available cash and other available debt financing sources.

The transaction is anticipated to be 3% dilutive to adjusted earnings per share in 2025, 1% dilutive in 2026, and accretive to adjusted earnings per share within 24 months after closing, it added.