Magnetic pull: Ellipse Technologies withdraws IPO after $380 million buyout

Ellipse Technologies, which is developing magnetically adjustable implant systems for orthopedic surgery, withdrew its plans for an initial public offering on Monday. It originally filed in October 2015 with a proposed deal size of $75 million.

The company agreed to be acquired by NuVasive (Nasdaq: NUVA) on January 6, 2016 for $380 million in cash. The acquisition price represents approximately 10x TTM sales of $40 million. 

The Aliso Viejo, CA-based company was founded in 2005 and booked $40 million in sales for the 12 months ended September 30, 2015. It had planned to list on the Nasdaq under the symbol MGEC. Piper Jaffray, William Blair and Canaccord Genuity were set to be the joint bookrunners on the deal.