Endologix Inc. (NSDQ:ELGX) closed its acquisition of Palo Alto, Calif.-based Nellix.
The all-stock deal, which Endologix announced Oct. 27, expands its aortic disorder treatment devices. The Irvine, Calif.-based company said the merger is designed to increase its share of the aortic repair market.
Nellix is developing an endograft for the treatment of abdominal aortic aneurysms, a device which would complement Endologix‘s flagship endovascular stent graft product, the Powerlink System, according to a press release.
“The talented team at Nellix has developed a unique technology that has the potential to become the new standard of care for abdominal aneurysm repair. We believe that this acquisition combined with our existing and other new products in development give Endologix the most innovative pipeline of aortic endovascular devices in the industry," Endologix CEO John McDermott said in prepared remarks.
The deal also included a $15 million equity investment in Endologix from Nellix’s majority shareholder Essex Woodlands Health Ventures, Endologix said. The company plans to use the proceeds from the investment to integrate Nellix technology into its own platforms, conduct clinical studies, begin building a European sales force and for general corporate purposes.
The agreement between the two companies also stipulates additional milestone-based stock payments of up to $39 million, according to Endologix.