Nuvasive Inc. (San Diego), a company focused on transforming spine surgery with minimally disruptive, procedurally-integrated solutions, has entered into an agreement to acquire Ellipse Technologies Inc. (Aliso Viejo, Calif.) for a $380 million upfront cash payment and a potential $30 million milestone payable in 2017. The boards of both companies have unanimously approved the pending acquisition.

Ellipse is a private company that specializes in procedural solutions for complex skeletal deformity. Nuvasive said Ellipse’s magnetic growing rod technology is currently receiving rapid adoption in the pediatric deformity and orthopedic markets, and provides new growth opportunities.

“Ellipse’s revolutionary technology, which has been enthusiastically received by surgeons, has the potential to become the standard of care for spine and orthopedic patients. It is in Nuvasive’s sweet-spot of game-changing innovation, bolstering our leadership in spine and providing new growth opportunities in the U.S. and around the world,” said Gregory Lucier, Nuvasive’s chairman/CEO.

Nuvasive said it expects the acquisition to accelerate its revenue growth toward the high-single digit range and to be slightly accretive to the company’s non-GAAP diluted earnings per share within the first 12 months and significantly accretive thereafter. Nuvasive said it also expects the transaction to support its five-year, double-digit return on invested capital goal. The transaction is expected to close at the end of February.

Shares of (NASDAQ:NUVA) were up 2.28 percent coming in at $53.44 in after hours trading on Tuesday.