Cardinal Health to Acquire Specialty Networks for $1.2B in Cash
Cardinal Health, a global distributor of pharmaceuticals and medical products, has announced its plan to acquire Specialty Networks, a technology-enabled multi-specialty group purchasing and practice enhancement organization, for $1.2 billion in cash. This strategic acquisition aligns with Cardinal Health’s goal of expanding its presence in the specialty business and providing innovative technologies and capabilities to meet customer needs.
The acquisition of Specialty Networks will create increased clinical and economic value for over 11,500 specialty providers, including more than 7,000 physicians across 1,200 independent physician practices. It also serves as a platform for Cardinal Health’s expansion across specialty therapeutic areas.
Enhancing Cardinal Health’s Offering in Specialty Therapeutic Areas
Cardinal Health’s CEO, Jason Hollar, expressed that expanding in the specialty market is a top priority for the company. The acquisition of Specialty Networks strengthens the link between Cardinal Health’s downstream and upstream services, creating value for customers, manufacturer partners, and patients.
Specialty Networks, a leader in specialty practice management, research, and technologies, will bring unique service offerings and advanced technology solutions to Cardinal Health. Their flagship product, PPS Analytics, analyzes data from various sources and transforms it into meaningful insights for providers, researchers, payers, and policymakers.
By combining the distribution, research, and technology capabilities of Cardinal Health with Specialty Networks’ expertise, the company aims to expand its suite of clinical, practice management, and distribution solutions and support the success of specialty practices across the nation.
Building the Navista™ Network to Support Independent Community Oncologists
Cardinal Health will also benefit from Specialty Networks’ deep understanding of independent specialty physician practices, which will accelerate the ongoing development of the Navista™ Network. The Navista™ Network focuses on supporting the clinical and operational needs of independent community oncologists.
This partnership between Specialty Networks and Cardinal Health is seen as a cultural fit, with both companies sharing a mission to deliver value for specialty physician practices and their patients and manufacturers. Shailendra Sharma, CEO of Specialty Networks, will continue leading the business as part of Cardinal Health.
About Cardinal Health
Cardinal Health is a global healthcare services and products company. With over 50 years of experience, operations in more than 30 countries, and approximately 48,000 employees worldwide, Cardinal Health plays a crucial role in ensuring access to healthcare. The company operates one of the largest pharmaceutical supply chains in the United States and provides reliable distribution and advanced technology solutions to community-based practices.
Accretive to Non-GAAP Earnings per Share
The transaction is subject to customary closing conditions and regulatory approvals. Once completed, the acquisition is expected to be accretive to non-GAAP earnings per share within 12 months. Cardinal Health remains focused on investing in strategic growth opportunities that drive its mission of improving the cost-effectiveness and quality of healthcare.
Analyst comment
Positive news. The acquisition of Specialty Networks is expected to enhance Cardinal Health’s presence in the specialty business, provide innovative technologies and capabilities, and create increased clinical and economic value for specialty providers. The partnership will also support the development of the Navista™ Network and strengthen Cardinal Health’s suite of solutions. The transaction is expected to be accretive to non-GAAP earnings per share within 12 months.
