Novanta to Acquire Riverpoint Medical for $1.2 Billion

By Chris Stiles • Tuesday, June 09 12:27 • Permanent Link

Novanta said it will buy Riverpoint Medical for $1.2 billion in cash upfront, plus a $250 million milestone payment due in the first quarter of 2027, in a deal expected to close in the third quarter of 2026.

The company said Riverpoint is growing revenue and cash flow at about twice Novanta’s pace and has a long-term annual revenue growth outlook of 12% to 15%. Novanta said the acquisition will double its recurring medical consumables revenue to about $300 million and lift medical end-market concentration to 60% of total revenue.

Novanta said the purchase price equals about 19 times Riverpoint’s estimated 2026 adjusted EBITDA excluding synergies, or about 17 times estimated 2026 adjusted EBITDA including the full value of expected year-five pro forma synergies.

Under Novanta ownership, Riverpoint is expected to generate about $80 million of adjusted EBITDA in 2027, including synergies. Novanta also said it has identified more than $80 million in cumulative profit and cash flow synergies over five years after closing.

The company said the deal adds a $2 billion addressable market opportunity and is expected to deepen its relationship with a common customer base. Novanta also said the transaction will add FDA-registered production capacity in customer markets and expand its regional manufacturing footprint.

Novanta said the deal will be financed with cash on hand, its existing credit facility, and the recently completed $300 million equity raise. It expects net leverage to be about 2.7 times after closing, with gross leverage below 3.0 times, and to reduce net leverage to below 2.3 times by year-end 2027.

Novanta said the acquisition will be immediately accretive to adjusted diluted EPS in 2026 and accretive in 2027 to revenue growth rate, adjusted gross margin, adjusted EBITDA margin, adjusted diluted EPS, and operating cash flow. As a result of these announcements, the company's shares have moved -0.96% on the market, and are now trading at a price of $162.76. For the full picture, make sure to review NOVANTA INC's 8-K report.

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