What is the story about?
What's Happening?
Cardinal Health has announced a $1.9 billion acquisition of Solaris Health, a urology-focused multispecialty management services organization (MSO). This acquisition is part of Cardinal Health's strategy to expand its multispecialty MSO platform, The Specialty Alliance. The deal will add over 750 providers across 250 practice locations in 14 states, enhancing Cardinal Health's reach in the urology sector. The acquisition is expected to be slightly accretive to Cardinal Health's non-GAAP earnings per share in the first year following the close.
Why It's Important?
The acquisition of Solaris Health is a strategic move by Cardinal Health to strengthen its position in the specialty medicine market, particularly in urology. This expansion is crucial as it allows Cardinal Health to offer comprehensive services to community urologists, leveraging a robust national MSO infrastructure. The deal is expected to diversify revenue streams and enhance Cardinal Health's capabilities in providing ancillary services, which are vital for sustaining growth in the competitive healthcare industry.
What's Next?
Following the acquisition, Cardinal Health plans to integrate Solaris Health's operations with its existing MSO platforms, aiming to reach approximately 3,000 providers across 32 states. This integration will likely involve collaboration with GI Alliance physician owners and management, further expanding Cardinal Health's footprint in specialty medicine. The company is focused on accelerating growth in high-priority areas such as autoimmune, urology, and oncology, which are supported by ongoing innovation and a robust product pipeline.
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