Novanta announced that it has entered into a definitive agreement to acquire Riverpoint Medical, a leading developer and manufacturer of minimally invasive surgical consumables, from Arlington Capital Partners in a transaction valued at up to $1.45 billion.
Under the agreement, Novanta will pay $1.2 billion in upfront cash consideration and an additional $250 million milestone payment in the first quarter of 2027. The transaction is expected to close during the third quarter of 2026, subject to customary regulatory approvals and closing conditions.
The acquisition supports Novanta’s strategy of increasing recurring revenue streams and strengthening relationships with medical original equipment manufacturers. Riverpoint Medical develops and manufactures private-label minimally invasive surgical consumables and instruments used in sports medicine, trauma and cardiovascular surgery. Its portfolio includes sutures, suture anchors, implantable materials and surgical instruments featuring proprietary coating technologies and complex assemblies.
Novanta said Riverpoint is expected to deliver long-term annual revenue growth of 12% to 15%, approximately twice the rate of Novanta’s existing business. Following the acquisition, Novanta expects its recurring medical consumables revenue to double to approximately $300 million, while increasing medical end-market exposure to about 60% of total revenue.
The combined company will also gain access to an additional $2 billion addressable market and enhance its manufacturing footprint with FDA-registered production facilities in Portland, Oregon, and San Jose, Costa Rica.
Riverpoint is projected to generate approximately $80 million in adjusted EBITDA, including synergies, in 2027. Novanta estimates more than $80 million of cumulative profit and cash flow synergies over five years.
The purchase price represents roughly 19 times Riverpoint’s estimated 2026 adjusted EBITDA excluding synergies, or approximately 17 times adjusted EBITDA when expected synergies are included.
Novanta plans to finance the acquisition through cash on hand, its existing credit facility, and a recently completed $300 million equity offering. The company expects the deal to be immediately accretive to adjusted diluted earnings per share in 2026 and accretive to revenue growth, margins and operating cash flow beginning in 2027.
Riverpoint, headquartered in Portland, Oregon, serves leading medical OEM customers and has built its position through proprietary material science and coating technologies, as well as its ability to manage the FDA 510(k) clearance process on behalf of customers.
KEY QUOTES:
“Riverpoint Medical is an exceptional business, a market leader in high-growth minimally invasive surgical consumables that is perfectly aligned with our strategic direction and our business model. Riverpoint Medical is growing revenue and cash flows at twice the rate of Novanta, with an expected long-term annual revenue growth outlook of 12% to 15%. Together with Novanta’s core business, this acquisition is projected to double our recurring medical consumables revenue to approximately $300 million, deepen our medical end-market concentration to 60% of total revenue, and meaningfully accelerate revenue and profit growth. Because Novanta and Riverpoint serve a common customer base, we will be able to deepen those relationships while adding an additional addressable market opportunity of $2 billion. Beyond the core transaction, we expect this will meaningfully advance our regional manufacturing footprint, placing FDA-registered production capacity in the markets our customers serve, reducing supply chain risk and improving responsiveness. Riverpoint is the right fit, at the right time, and Novanta is the right owner.”
Matthijs Glastra, Chair and Chief Executive Officer, Novanta
“Novanta is the ideal partner for Riverpoint Medical and for the customers we serve. We have built a uniquely capable business that serves as the innovation engine behind some of the most important new product development programs of our OEM customers in sports medicine, trauma and cardiovascular surgery, utilizing highly specialized implantable surgical fibers. Joining Novanta will accelerate our strategy, while giving our customers access to a broader suite of surgical solutions through a single, deeply trusted OEM partner. We are thankful to Arlington for their strong partnership in guiding us to this point and are excited about the opportunities and resources Novanta will provide our team going forward, giving them the resources and operational infrastructure to scale faster and expand into adjacencies. We are proud of what Riverpoint has accomplished but are more excited about what we will create together.”
Doug King, Chief Executive Officer, Riverpoint Medical
“When we first partnered with Riverpoint, we recognized a company with exceptional engineering talent and differentiated capabilities in surgical fiber and biomedical textiles. Together with the management team, we’ve meaningfully expanded its product portfolio, scaled its manufacturing, and broadened its end markets. Novanta is the ideal home for Riverpoint’s next chapter, and we’re confident the combination will accelerate innovation for customers and create lasting opportunities for the team.”
Matt Altman, Managing Partner, Arlington Capital Partners
“Riverpoint exemplifies the kind of business we set out to build at Arlington, mission-critical products, deep technical capability, and a culture of innovation. We’re proud of what this team has accomplished and excited to see Riverpoint join Novanta, a strategic partner with the scale and resources to take its technologies to the next level.”
Gordon Auduong, Managing Director, Arlington Capital Partners
