NuVasive (Nasdaq: NUVA) and Ellipse Technologies, a portfolio company of HBM Healthcare Investments, announced the signing of a definitive agreement whereby NuVasive will acquire Ellipse for 380 Mio. USD in cash with a further payment of 30 Mio. USD due in 2017, if Ellipse achieves certain revenue targets. HBM was an early investor in the company and the largest institutional shareholder.
Since 2011, HBM Healthcare Investments (SIX: HBMN), the investment company managed by HBM Partners, has invested a total of 16 Mio. USD in Ellipse Technologies and owns 32% of the company. The transaction will generate over 120 Mio. USD of cash proceeds to HBM Healthcare Investments with an investment multiple of over 7x.
Ellipse Technologies, Aliso Viejo, USA, develops and markets a new generation of non-invasively adjustable implants to treat spine deformations in children and other orthopaedic conditions. During the first nine months of 2015, the company generated sales of over 30 Mio. USD with its two approved products MAGEC (treatment of spine deformations) and PRECICE (treatment of limb length differences).
HBM Partners AG is a healthcare-focused asset manager with approximately 1,5 Bio. USD under management. HBM focuses on development-stage and growth financings of private companies as well as investments in public companies. Core target sectors are biopharmaceuticals, medical devices and diagnostics. HBM Partners advises HBM Healthcare Investments AG (SIX: HBMN), HBM BioCapital and further specialized private equity and public equity funds. Since 2001, HBM-advised funds invested in over 80 private companies in the U.S. and in Europe, generating over 50 trade sales and IPOs since inception.