NuVasive To Acquire Ellipse Technologies
In a recent press release, San Diego, California-based NuVasive, Inc. announced that it will acquire Ellipse Technologies, Inc. (“Ellipse”), a privately held medical technology company based in Aliso Viejo, California. According to its website, NuVasive is the third largest medical device company in the global spine industry and is dedicated to innovation and development focused on minimally disruptive surgical products and procedures for the spine. Ellipse describes itself as an innovative company dedicated to the design, development, and successful commercialization of non-invasively adjustable, remote controlled implants for a broad spectrum of spinal and orthopedic applications.
The press release states that the acquisition builds on NuVasive’s reputation as the leading technology provider for spine procedure solutions by adding a “highly regarded, disruptive technology platform.” Specifically, a Medical Device and Diagnostic Industry article reports that the acquisition strategically adds two of Ellipse’s main products to NuVasive’s product portfolio – MAGEC and PRECICE – products that will help boost NuVasive’s international footprint, since 37% of Ellipse’s 2015 revenue came from overseas. According to Ellipse, MAGEC (shown to the right) is a non-invasively adjustable growing rod used to brace the spine during growth to minimize the progression of scoliosis, and PRECICE is an adjustable intramedullary nail used for limb lengthening of the femur and tibia.
In connection with the acquisition, Gregory T. Lucier, Chairman and CEO of NuVasive, stated:
NuVasive remains committed to adult deformity through our Integrated Global Alignment (iGA™) platform, and the acquisition of Ellipse will aggressively insert NuVasive into early onset and idiopathic scoliosis, an important and attractive part of the spinal deformity market for NuVasive where we have tremendous opportunities for accelerated growth.
Edmund J. Roschak, President and CEO of Ellipse, said:
Joining forces with NuVasive not only validates the promise of our technology, but provides us with the scale and resources necessary to realize our full potential.
The press release notes that the Boards of Directors of both companies unanimously approved the terms of the acquisition, which include a $380 million upfront cash payment as well as a potential $30 million milestone payable in 2017. The transaction is expected to close by the end of February 2016, subject to customary closing conditions and regulatory approvals.