Novanta to Acquire Riverpoint Medical for $1.2 Billion

By Hao Liu • Tuesday, June 09 16:11 • Permanent Link

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

The acquisition would immediately expand Novanta’s medical consumables business and lift recurring medical consumables revenue to about $300 million, roughly double its current level. Novanta said Riverpoint is growing revenue and cash flow at about twice Novanta’s pace, with a long-term annual revenue growth outlook of 12% to 15%.

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

The purchase price implies 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 synergies.

Novanta said the deal will deepen its medical end-market concentration to 60% of total revenue. It also said the transaction adds a $2 billion addressable market opportunity and expands its portfolio in minimally invasive surgical consumables across sports medicine, trauma and cardiovascular surgery.

On financing, Novanta plans to use cash on hand, its existing credit facility and a recently completed $300 million equity raise. After closing, Novanta expects net leverage of about 2.7x, with gross leverage below 3.0x, and aims to bring net leverage below 2.3x by year-end 2027.

Novanta said the acquisition will be immediately accretive to adjusted diluted EPS in 2026. In 2027, it expects the deal to be accretive to revenue growth, adjusted gross margin, adjusted EBITDA margin, adjusted diluted EPS and operating cash flow.

The company also said it is maintaining its previously issued second-quarter and full-year 2026 guidance for the standalone business. Following these announcements, the company's shares moved -2.33%, and are now trading at a price of $160.505. For the full picture, make sure to review NOVANTA INC's 8-K report.

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