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Friday, September 20, 2024

Cardinal Health to acquire Integrated Oncology Network for $1.12 billion

 Cardinal Health on Friday agreed to acquire community cancer center operator Integrated Oncology Network for $1.12 billion in cash, marking its expansion into cancer care.

The Dublin, Ohio-based company is the latest to join the trend of healthcare service companies diversifying beyond drug distribution.

Rival McKesson recently acquired a unit of Florida Cancer Specialists & Research Institute for $2.49 billion, while Cencora, in partnership with TPG Inc., purchased OneOncology for $2.1 billion in 2023.

The deal gives Cardinal Health's cancer-focused unit Navista access to a network of more than 100 healthcare providers across 10 states in the U.S.

As part of the agreement, Integrated Oncology Network's more than 50 practice sites will join Navista, which offers reimbursement services, management support, and various other services to community oncology practices.

"Since its 2023 investor day at which Navista was unveiled, Cardinal has talked about expanding its work with community practices, and we see today’s acquisition as providing a positive step in that direction in the oncology space," said J.P.Morgan analyst Lisa Gill.

Cardinal Health expects the transaction to be accretive to its profit 12 months after closing the deal.

https://finance.yahoo.com/news/cardinal-health-acquire-integrated-oncology-133007067.html

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