Novanta Inc. (Nasdaq: NOVT) (“Novanta” or the “Company”), a trusted technology partner to medical and advanced technology equipment manufacturers, today announced that it has completed the acquisition of Riverpoint Medical (“Riverpoint Medical” or “Riverpoint”) from Arlington Capital Partners. Riverpoint is a category leader in high-growth minimally invasive surgical consumables, including advanced surgical fibers and related technologies for sports medicine, trauma and cardiovascular surgical applications.

“Riverpoint Medical is a market-leading, high-growth surgical consumables business growing revenue and cash flow at twice Novanta's rate, and the acquisition is expected to double Novanta's recurring medical consumables revenue to roughly $300 million while pushing medical end-market exposure to 60% of total revenue,” said Matthijs Glastra, Novanta’s Chair & Chief Executive Officer. “Beyond the top-line boost, we believe the deal unlocks a $2 billion incremental addressable market through shared OEM customer relationships and strengthens Novanta’s regional, FDA-registered manufacturing footprint, positioning the overall company for accelerated, higher-margin growth.”

The transaction is expected to generate a high single-digit return on invested capital by year three, achieve the Company’s return hurdle rate by year five, and be immediately accretive to Novanta’s organic growth, adjusted gross margins, adjusted EBITDA growth and margins, and cash flows. The acquisition is also expected to contribute $0.18 to $0.25 of adjusted earnings per share (“EPS”) in 2027, the first full year after the close, with additional detail on the impact to Novanta’s 2026 financials to be provided on the upcoming second quarter earnings call. Riverpoint Medical will be reported under Novanta’s Medical Solutions operating segment.