Novanta agreed on 9 June to acquire Riverpoint Medical from Arlington Capital Partners for $1.2bn in cash upfront and a $250m milestone payment due in early 2027.
Why Novanta Inc. is buying Riverpoint Medical
Novanta said Riverpoint is growing revenue and cash flow at twice its own rate, with a long-term growth outlook of 12% to 15% a year. The deal doubles Novanta's recurring medical consumables revenue to about $300m, raises the medical share of revenue to 60% and adds a $2bn addressable market among shared OEM customers.
Deal terms and financing
The upfront price equals about 19 times Riverpoint's estimated 2026 adjusted EBITDA excluding synergies, or about 17 times including year-five synergies. Novanta expects Riverpoint to generate about $80m of adjusted EBITDA including synergies in 2027 and is funding the deal from cash and its credit facility.
Regulatory approvals and timing
Closing was expected in the third quarter subject to regulatory approvals. Novanta announced completion on 27 July 2026.
Market context
Riverpoint will be reported in Novanta's Medical Solutions segment. Its products include implants and constructs requiring complex assemblies and coatings for absorbable and non-absorbable implant material.
