San Diego surgical device maker NuVasive will acquire Ellipse Technology for $380 million up front, expanding its presence in the skeletal deformity market.If Ellipse revenues reach specific targets, a potential $30 million milestone payment is on the horizon for 2017.
Ellipse has a portfolio of remote-controlled, magnetic growing rod technology that’s being rapidly adopted in the pediatric deformity and orthopedic markets, the NuVasive says. This is ostensibly because these corrective orthopedics can be adjusted noninvasively as a patient changes and grows.
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This looks to be the first medical device M&A deal of the year – but, more importantly, it’s the first acquisition under the helm of Gregory T. Lucier, who has been the publicly traded company’s CEO since May. Lucier most recently served as CEO of Life Technologies – a life sciences tool behemoth that was acquired two years ago for $13.6 billion.
Under Lucier’s guidance, Life Technologies was a highly acquisitive company – built almost exclusively through mergers and acquisition. It will be interesting to see if Lucier employs the same tactics in NuVasive, given the differences in the medical device M&A market.