NuVasive, a San Diego-based medical device company that makes products for spine surgery, has acquired Ellipse Technologies in a deal that could be worth up to $410 million.
The financial terms include an upfront cash payment of $380 million, plus $30 million for meeting certain revenue targets next year.
Ellipse, based in Aliso Viejo, Calif., makes implantable products that can be adjusted externally using magnets. Its MAGEC (Magnetic Expansion Control) system is used to treat patients with scoliosis and other spinal deformities, while its Precice system is used for limb lengthening.
Because Ellipse's products are used to treat pediatric patients, they complement NuVasive's portfolio of products, which are used to treat adult deformities, NuVasive said in a news release.
The companies expect to close the deal within the next month and fund it with cash on hand.
NuVasive in May introduced a single platform for surgeons performing spinal-column alignments that bundles together its implants with technology for neuro-monitoring and computer-assisted surgical planning.
NuVasive has been under new leadership since Gregory Lucier was appointed CEO in May.
For the third quarter, NuVasive reported net income of $13 million on $200.5 million in revenue, compared with a net loss of $1.8 million on $189.9 million in revenue during the same period in 2014.