Zanett [Nasdaq: ZANE] has acquired Paragon Dynamics, a firm that provides software and satellite engineering services with domain area expertise on government and aerospace satellite and IT infrastructure contracts.

According to the terms of the deal, Zanett (New York City) will acquire Paragon (Englewood, Colo.) for $4.8 million, of which $2.4 million will be paid at closing consisting of $1.2 million in cash and 584,825 shares of stock in Zanett. The remaining $2.4 million will be paid over the next three years in equal cash and stock increments, subject to Paragon attaining various performance targets. Paragon may receive additional 800,000 shares of Zanett stock if Paragon’s revenues and earnings both exceed 30 percent annual growth over three years.