Cardinal Health (NYSE: CAH) has announced its definitive agreement to acquire Specialty Networks for $1.2 billion in cash. Specialty Networks is a technology-enabled multi-specialty group purchasing and practice enhancement organization, operating in urology, rheumatology, and gastroenterology. This acquisition is a strategic move by Cardinal Health to accelerate growth in its Specialty business and enhance its technology and service offerings.
- The acquisition will benefit 11,500 specialty providers, including over 7,000 physicians across 1,200 independent physician practices.
- It aims to create increased clinical and economic value and expand Cardinal Health’s platform across specialty therapeutic areas.
- The acquisition enhances Cardinal Health’s capabilities, particularly in downstream provider-focused analytics and upstream data and research opportunities with biopharma manufacturers.
- Specialty Networks’ PPS Analytics platform, which uses AI and data analytics tools, will be integrated to provide insights for diagnostic and therapeutic interventions.
- This move also supports the ongoing development of Cardinal Health’s Navista™ Network, which focuses on the needs of independent community oncologists.
The transaction is subject to customary closing conditions and regulatory approvals and is expected to positively impact Cardinal Health’s non-GAAP earnings per share 12 months following the close.