NuVasive Inc., a San Diego-based medical device maker, which recently announced plans to move its Fairborn operations to West Carrollton, said Tuesday that it would acquire privately held Ellipse Technologies Inc. for $380 million in cash.
NuVasive said it expects the acquisition to boost revenues “toward the high-single digit range” and to be slightly accretive to earnings. The company reported profits of $62.26 million last year on sales of just over $800 million.
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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