Novanta Inc. has entered into a definitive agreement to acquire Riverpoint Medical from Arlington Capital Partners in a transaction valued at up to $1.45 billion, marking a significant expansion of its medical technology portfolio. The Riverpoint Medical transaction includes $1.2 billion in cash at closing and a further $250 million milestone payment scheduled for the first quarter of 2027. Subject to regulatory approvals and customary closing conditions, the acquisition is expected to be completed during the third quarter of 2026. Through the deal, Novanta aims to strengthen its presence in minimally invasive surgical consumables while increasing recurring revenue generated from medical markets. The company expects the acquisition to enhance its relationships with medical device manufacturers and further reduce exposure to cyclical demand trends.
Riverpoint Medical develops and manufactures minimally invasive surgical consumables and implantable technologies used in sports medicine, trauma, and cardiovascular surgery. Its portfolio includes advanced surgical fibers, implantable materials, suture anchors, surgical instruments, and proprietary coating technologies supplied to major medical OEMs under private-label arrangements. Commenting on the acquisition, Matthijs Glastra, chair and chief executive officer of Novanta, said, “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.” He added, “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%.” According to Novanta, the acquisition is expected to double recurring medical consumables revenue to approximately $300 million and raise medical end-market exposure to about 60% of total revenue. The company also estimates that the deal will expand its addressable market opportunity by roughly $2 billion while adding manufacturing capacity closer to customers.
Founded in 1964 and headquartered in Portland, Oregon, Riverpoint operates manufacturing facilities in Portland and San Jose, Costa Rica. The company has established expertise in biomedical textiles, advanced material science, and regulatory support, including management of the FDA 510(k) clearance process for OEM customers. Doug King, chief executive officer of Riverpoint Medical, said, “Novanta is the ideal partner for Riverpoint Medical and for the customers we serve.” He added, “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.” King said the combination will broaden customer access to surgical solutions while supporting manufacturing expansion, product development, and entry into new markets.
For Arlington Capital Partners, the sale concludes a period of growth focused on expanding Riverpoint’s manufacturing footprint, product offerings, and market reach. “When we first partnered with Riverpoint, we recognized a company with exceptional engineering talent and differentiated capabilities in surgical fiber and biomedical textiles,” said Matt Altman, managing partner at Arlington Capital Partners. “Together with the management team, we’ve meaningfully expanded its product portfolio, scaled its manufacturing, and broadened its end markets.” Novanta expects Riverpoint to generate approximately $80 million in adjusted EBITDA, including synergies, during 2027 and has identified more than $80 million in cumulative profit and cash flow synergies over five years. Once completed, Riverpoint Medical will join Novanta’s Medical Solutions operating segment. The transaction will be financed through cash on hand, borrowings under the company’s existing credit facility, and proceeds from a recently completed $300 million equity offering.
