Novanta to acquire Riverpoint Medical in US$1.45B deal to strengthen its minimally invasive surgery portfolio

USA—Novanta has agreed to acquire Riverpoint Medical for US$1.45 billion, marking a major step in the company’s strategy to expand its presence in the rapidly growing minimally invasive surgery market and increase its recurring medical consumables revenue.

Under the terms of the agreement, Novanta will pay an upfront cash consideration of US$1.2 billion, with an additional milestone payment of US$250 million due in the first quarter of 2027.

 The transaction is expected to close during the third quarter of 2026, subject to regulatory approvals and customary closing conditions.

Novanta plans to finance the acquisition using a combination of cash on hand, proceeds from a recently completed US$300 million equity raise, and its existing credit facilities.

The company announced the private placement earlier this month as part of its efforts to support the acquisition and maintain financial flexibility.

Expanding presence in surgical consumables

Riverpoint Medical is a leading developer and manufacturer of minimally invasive surgical consumables and specialized medical devices.

The company designs private-label products for original equipment manufacturers (OEMs), offering a portfolio that includes surgical fibers, sutures, implantable materials, suture anchors, and surgical instruments.

Its technologies are widely used in sports medicine, trauma care, cardiovascular surgery, wound closure, regenerative medicine, and other advanced surgical applications.

 Riverpoint has built its reputation through proprietary material science, biomedical textile technologies, and specialized coating platforms that support innovative surgical procedures.

Following the completion of the transaction, Riverpoint Medical will operate within Novanta’s Medical Solutions segment.

Driving recurring revenue Growth

Novanta, which supplies advanced technologies for medical, life sciences, and industrial OEMs, said the acquisition aligns with its long-term strategy of increasing exposure to durable and recurring revenue streams.

The company expects the deal to double its recurring medical consumables revenue to approximately US$300 million and increase the proportion of revenue generated from medical end markets to roughly 60% of total sales.

Company executives also believe the acquisition will reduce exposure to cyclical market fluctuations while strengthening relationships with healthcare OEM customers.

In 2025, Novanta generated revenue approaching US$1 billion.

Its Automation Enabling Technologies segment contributed approximately US$501 million, while the Medical Solutions segment generated about US$480 million, reflecting continued growth across both businesses.

Leadership highlights strategic benefits

Novanta Chief Executive Officer Matthijs Glastra said Riverpoint is expected to deliver long-term annual revenue growth of between 12% and 15%, nearly double Novanta’s current growth rate.

He noted that the acquisition is expected to accelerate revenue growth, improve profitability, and enhance cash flow generation.

The company also projects more than US$80 million in cumulative profit and cash flow, a concerted effort over the first five years following the transaction.

Additionally, Riverpoint is expected to contribute approximately US$80 million in adjusted EBITDA in 2027, including an anticipated concerted effort.

Riverpoint CEO Doug King described Novanta as a strong strategic partner that will help the company accelerate innovation and expand its reach within the surgical device market.

He said the combination will provide customers with access to a broader range of surgical solutions while giving Riverpoint additional resources to scale its operations and enter adjacent markets.

Riverpoint has been backed by Arlington Capital Partners since 2019.

During that period, the investment firm supported the company’s expansion through product development, manufacturing growth, and entry into new medical markets.

Arlington Managing Partner Matt Altman said the partnership helped transform Riverpoint into a leader in surgical fiber and biomedical textile technologies, adding that Novanta is well-positioned to support the company’s next phase of growth and innovation.