NuVasive, Inc. (NASDAQ: NUVA), a medical device company focused on transforming spine surgery with procedurally-integrated solutions, acquired Ellipse Technologies, Inc., an Aliso Viejo, California-based medical technology company focused on advancing procedural solutions for complex skeletal deformity, for up to $410m.
The transaction, which is expected to close by the end of February 2016, subject to customary closing conditions and regulatory approvals, includes a $380m upfront cash payment and a potential $30m milestone payable in 2017 related to the achievement of specific revenue targets.
Founded in 2005 and led by Edmund J. Roschak, President and Chief Executive Officer, Ellipse is the developer and marketer of a novel platform of magnetically adjustable implant systems based on its MAGnetic External Control, or MAGEC®, technology. The company has commercialized two product families: the MAGEC−EOS spinal bracing and distraction system for treatment of early onset scoliosis and the PRECICE® limb lengthening system, or PRECICE LLD, for treatment of limb length discrepancy.
For 2015, Ellipse had revenues of approximately $40 million compared to approximately $26 million in 2014.
Led by Gregory T. Lucier, Chairman and Chief Executive Officer, NuVasive offers a spine portfolio of more than 90 products developed to improve spine surgery and patient outcomes. Its procedural solution is its Maximum Access Surgery, or MAS®, platform for lateral spine fusion with integrated neuromonitoring, customizable exposure, and a broad offering of application-specific implants and fixation devices designed to address a variety of pathologies.
After the closing of the transaction, NuVasive plans to maintain a Design Center of Excellence in Aliso Viejo, California, where Ellipse is headquartered while Mr. Roschak will join NuVasive as a member of the executive leadership team reporting directly to Mr. Lucier.