Endologix, a developer of aortic disorder treatments, has signed a definitive agreement to acquire Nellix, a medical device company focused on treatments for abdominal aortic aneurysms (AAA).
Under the terms of agreement, Endologix will purchase Nellix for $15 million in stock at closing, in addition to milestone-based stock payments that could reach up to $39 million. In addition, a $15 million equity investment in Endologix from Essex Woodlands Health Ventures, a shareholder of Nellix, will be included in the deal.
Irvine, Calif.-based Endologix has speculated that the closing of the transactions will occur during the fourth quarter of this year, but the transaction will be subject to approval of the company’s stockholders and other closing conditions.
The $15 million in capital from Essex Woodlands will support the transition and development of Nellix’s endograft technology that Endologix expects to launch in Europe in 2012. Additionally, the capital will be used to build a direct sales force in Europe and initiate a U.S. investigational device exemption clinical trial.