Novanta outlays $1.45bn for Riverpoint Medical buyout

Novanta has agreed to get Riverpoint Medical for an upfront terms of $1.2bn to grow its portfolio into the minimally invasive country conception and beforehand its aesculapian consumables revenue.

Novanta, which develops components spanning robotics, photonics, and question power sub-systems, volition concern the acquisition via a premix of currency connected hand, proceeds from a precocious completed $300m equity raise, and its existing recognition facility.

Expected to adjacent successful Q3 2026, the deal's $1.2bn upfront currency information is augmented with a $250m milestone outgo successful Q1 2027. Upon completion of the transaction, Riverpoint Medical volition beryllium reported nether Novanta's aesculapian solutions concern segment.

A portfolio institution of VC steadfast Arlington Capital Partners, Riverpoint develops and manufacturers aesculapian devices focused connected precocious surgical fibres and related technologies. The institution provides archetypal instrumentality manufacturers (OEMs) with private-label minimally invasive surgical consumables and instruments crossed extremity markets including sports medicine, trauma, and cardiovascular surgery.

Novanta highlighted that its acquisition of Riverpoint aligns with its strategy to displacement its portfolio to "more durable, recurring gross streams" and is convinced it volition assistance it to "further trim concern cyclicality", portion deepening its aesculapian OEM partnerships, and "compounding and accelerating" its gross and currency flow.

Novanta achieved gross approaching $1bn successful 2025, with its automation enabling technologies conception bringing successful astir $501m and its aesculapian solutions conception generating astir $480m, indicative of year-over-year (YoY) rises of 2.1% and 4.6%, respectively.

Novanta's CEO, Matthijs Glastra, said: "Riverpoint Medical is increasing gross and currency flows astatine doubly the complaint of Novanta, with an expected semipermanent yearly gross maturation outlook of 12% to 15%.

"Together with Novanta's halfway business, this acquisition is projected to treble our recurring aesculapian consumables gross to astir $300m, deepen our aesculapian end-market attraction to 60% of full revenue, and meaningfully accelerate gross and nett growth."

Riverpoint became a portfolio institution of Arlington successful 2019. Throughout that time, the VC has assisted the institution successful expanding its merchandise portfolio, scaling its manufacturing capability, and broadening its extremity markets, according to Arlington managing spouse Matt Altman.

Altman continued: "Novanta is the perfect location for Riverpoint's adjacent chapter, and we're assured the operation volition accelerate innovation for customers and make lasting opportunities for the team."

"Novanta outlays $1.45bn for Riverpoint Medical buyout" was primitively created and published by Medical Device Network, a GlobalData owned brand.