In a strategic move to bolster its specialty and oncology portfolio, Cardinal Health has entered into an agreement to acquire Integrated Oncology Network for a substantial $1.12 billion in cash. This acquisition represents a significant step for Cardinal Health, aiming to enhance its clinical and practice management solutions in the oncology sector.
The transaction is anticipated to be accretive to Cardinal's adjusted earnings per share within 12 months following the deal's completion. However, the company has not disclosed an expected timeline for closure, as the acquisition is subject to regulatory approval. Integrated Oncology Network, an independent community oncology network led by physicians, operates over 50 practice sites across 10 states.
With this acquisition, Cardinal Health expects to expand its offerings and enhance its ability to deliver comprehensive oncology care. “Integrated Oncology Network has a proven model that provides extensive support for community oncology throughout the cancer care continuum and the healthcare ecosystem,” stated Jason Hollar, Cardinal's Chief Executive.
He expressed confidence that this acquisition will accelerate their oncology strategy and create substantial value for both providers and patients alike. As part of the acquisition agreement, the practices within Integrated Oncology Network will join Cardinal’s oncology practice alliance, Navista.
This partnership is set to empower community practices to improve patient outcomes, as articulated by Barry Tanner, CEO of Integrated Oncology Network. Earlier this year, Cardinal Health also acquired Specialty Networks, further establishing its presence in the drug distribution market. Through this acquisition, Integrated Oncology Network’s practices will gain access to the advanced analytics capabilities offered by Navista, utilizing artificial intelligence alongside the expertise provided by Specialty Networks. In a related note, Cardinal Health recently announced its fiscal fourth-quarter results, which surpassed market expectations, resulting in an upward revision of its full-year earnings outlook, now projected in the range of $7.55 to $7.70 per share.
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