Through the $1.1 billion acquisition, Zimmer Biomet expects its sports medicine, extremities and trauma segment to outpace hips and knees, moving forward, according to a Feb. 6 report from Medtech Dive.
Zimmer Biomet also expects that the acquisition will give the company a larger presence in the ASC space.
Combined with Paragon 28 in a deal that is expected to close in the first half of 2025, Zimmer’s sports medicine, extremities and trauma segment will be larger than its $2 billion hip business, and will grow faster than its hip and knee segments, CFO Suky Upadhyay told investors.
The purchase is expected to be immediately accretive to revenue growth, and about 3% dilutive to adjusted earnings per share this year, Mr. Upadhyah told Medtech Dive.
Currently, Paragon does not have a presence in the ASC space, but Zimmer has forecast that 40% to 60% of all cases in orthopedics will move to ASCs within the next three to five years. Currently, nearly 20% of Zimmer’s U.S. sales currently come from ASCs.
Paragon estimated its net revenue for fiscal 2024 at about $255.9 million to $256.2 million, representing 18.2% to 18.4% reported growth over fiscal 2023.
