Deal includes $1.2bn upfront payment and $250m milestone due in Q1 2027 to expand medical consumables revenue.
Novanta will pay $1.2bn in cash upfront to acquire Riverpoint Medical, a developer of minimally invasive surgical devices. The transaction also includes a $250m milestone payment due in Q1 2027, bringing total consideration to $1.45bn.
The acquisition aims to bolster Novanta’s medical solutions segment, shifting its portfolio toward recurring revenue streams. Riverpoint, backed by Arlington Capital Partners, supplies OEMs with surgical consumables and instruments for sports medicine, trauma, and cardiovascular markets. Novanta expects the deal to reduce business cyclicality and deepen OEM partnerships.
Financing will come from cash reserves, a $300m equity raise, and existing credit facilities. The deal is expected to close in Q3 2026, with Riverpoint integrated into Novanta’s medical solutions business.