Novanta to Acquire Riverpoint Medical from Arlington Capital

Novanta, a tech partner to global medical and industrial OEMs, has begun a deal to acquire Riverpoint Medical, a leader in minimally invasive surgical consumables, from Arlington Capital.

Riverpoint Medical is a developer, designer, and manufacturer of advanced surgical fibers and related technologies, offering private-label minimally invasive surgical consumables and instruments for markets including sports medicine, trauma, and cardiovascular surgery. The company’s portfolio includes implants and constructs requiring complex assemble, as well as novel IP-protected coatings for absorbable and non-absorbable implant materials.

Novanta said the transaction meets its strategy to shift its portfolio to more durable, recurring revenue streams. The company believes this will help reduce business cyclicality, bolster its medical OEM partnerships, and help compound and accelerate revenue and cash flows.

Under the agreement’s terms, Novanta will acquire all outstanding equity interests of Riverpoint Medical’s parent company for an upfront cash consideration of $1.2 billion and a milestone payment of $250 million in Q1 2027.

The deal is expected to close in the third quarter of this year.

Comments from Novanta, Riverpoint, and Arlington

Matthijs Glastra, chair and CEO, Novanta: “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. 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 $300 million, deepen our medical end-market concentration to 60% of total revenue, and meaningfully accelerate revenue and profit growth. Because Novanta and Riverpoint serve a common customer base, we will be able to deepen those relationships while adding an additional addressable market opportunity of $2 billion. Beyond the core transaction, we expect this will meaningfully advance our regional manufacturing footprint, placing FDA-registered production capacity in the markets our customers serve, reducing supply chain risk and improving responsiveness. Riverpoint is the right fit, at the right time, and Novanta is the right owner.”

Doug King, CEO, Riverpoint Medical: “Novanta is the ideal partner for Riverpoint Medical and for the customers we serve. 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, utilizing highly specialized implantable surgical fibers. Joining Novanta will accelerate our strategy, while giving our customers access to a broader suite of surgical solutions through a single, deeply trusted OEM partner. We are thankful to Arlington for their strong partnership in guiding us to this point and are excited about the opportunities and resources Novanta will provide our team going forward, giving them the resources and operational infrastructure to scale faster and expand into adjacencies. We are proud of what Riverpoint has accomplished but are more excited about what we will create together.”

Matt Altman, managing partner, Arlington: “When we first partnered with Riverpoint, we recognized a company with exceptional engineering talent and differentiated capabilities in surgical fiber and biomedical textiles. Together with the management team, we’ve meaningfully expanded its product portfolio, scaled its manufacturing, and broadened its end markets. 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.” Gordon Auduong, a Managing Director at Arlington, added, “Riverpoint exemplifies the kind of business we set out to build at Arlington—mission-critical products, deep technical capability, and a culture of innovation. We’re proud of what this team has accomplished and excited to see Riverpoint join Novanta, a strategic partner with the scale and resources to take its technologies to the next level.”