Novanta outlays $1.45bn for Riverpoint Medical buyout
Novanta has agreed to acquire Riverpoint Medical for an upfront price of $1.2bn to expand its portfolio into the minimally invasive surgery segment and advance its medical consumables revenue.
Novanta, which develops components spanning robotics, photonics, and motion control sub-systems, will finance the acquisition via a mix of cash on hand, proceeds from a recently completed $300m equity raise, and its existing credit facility.
Expected to close in Q3 2026, the deal’s $1.2bn upfront cash consideration is augmented with a $250m milestone payment in Q1 2027. Upon completion of the transaction, Riverpoint Medical will be reported under Novanta’s medical solutions business segment.
A portfolio company of VC firm Arlington Capital Partners, Riverpoint develops and manufacturers medical devices focused on advanced surgical fibres and related technologies. The company provides original equipment manufacturers (OEMs) with private-label minimally invasive surgical consumables and instruments across end markets including sports medicine, trauma, and cardiovascular surgery.
Novanta highlighted that its acquisition of Riverpoint aligns with its strategy to shift its portfolio to “more durable, recurring revenue streams” and is convinced it will help it to “further reduce business cyclicality”, while deepening its medical OEM partnerships, and “compounding and accelerating” its revenue and cash flow.
Novanta achieved revenue approaching $1bn in 2025, with its automation enabling technologies segment bringing in around $501m and its medical solutions segment generating approximately $480m, indicative of year-over-year (YoY) rises of 2.1% and 4.6%, respectively.
Novanta’s CEO, Matthijs Glastra, said: “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 $300m, deepen our medical end-market concentration to 60% of total revenue, and meaningfully accelerate revenue and profit growth.”
Riverpoint became a portfolio company of Arlington in 2019. Throughout that time, the VC has assisted the company in expanding its product portfolio, scaling its manufacturing capability, and broadening its end markets, according to Arlington managing partner Matt Altman.
Altman continued: “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.”
"Novanta outlays $1.45bn for Riverpoint Medical buyout" was originally created and published by Medical Device Network, a GlobalData owned brand.
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