Ellipse, based in Aliso Viejo, Calif., had 2015 revenues of approximately $40 million compared to approximately $26 million in 2014, representing 54 percent year-over-year growth.
NuVasive’s acquisition of Ellipse, which is expected to close by the end of February, could include a $30 million milestone payable in 2017 related to the achievement of specific revenue targets, according to both companies.
The acquisition will give NuVasive access to Ellipse’s magnetically adjustable implant systems, which are considered state-of-the-art technology in the $9 billion global spine market, and fits with the NuVasive’s market share-taking strategy, according to company officials.
“Ellipse’s revolutionary technology, which has been enthusiastically received by surgeons, has the potential to become the standard of care for spine and orthopedic patients,” said Gregory Lucier, NuVasive’s chairman and chief executive. “It is in NuVasive’s sweet-spot of game-changing innovation, bolstering our leadership in spine and providing new growth opportunities in the U.S. and around the world.”
Locally, NuVasive said last month that it plans to invest $45 million over two years in moving its manufacturing operations from 1 Herald Square in Fairborn – where it employs 97 workers - to West Carrollton by the end of 2016. The company plans bought the former Motoman Robotics site — a 160,000-square-foot facility on nine acres visible from Interstate 75.
The Ellipse acquisition will have no impact on the company’s plans for the local area, according to a spokeswoman.
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