Cardinal Health to Acquire Solaris Health for $1.9B

What You Ought to Know: 

– US drug distributor Cardinal Health has signed a $1.9B settlement to acquire a majority stake in Solaris Health from Lee Equity Partners. The deal is aimed toward increasing the Specialty Alliance, Cardinal Well being’s multi-specialty administration companies group (MSO) platform. 

– The acquisition will give Cardinal Well being a stake of round 75% in Solaris Well being. The transaction is predicted to be accomplished by the tip of this yr, pending customary closing situations.

Increasing Urology Companies to Meet Rising Wants

The acquisition will create the Urology Alliance, a brand new collaborative community of urology suppliers inside Cardinal’s Specialty Alliance MSO. This transfer aligns with the corporate’s broader urologic technique, which has included current acquisitions of Urology America, Potomac Urology, and Tutorial Urology & Urogynaecology.

The deal comes at a essential time, because the US faces a big scarcity of urologists. Based on analysis, 62% of US counties lack a training urologist, and for each ten urologists who retire, just one new one enters the sphere. This scarcity contributes to delayed diagnoses, elevated charges of advanced-stage situations, and vital well being disparities, notably in rural communities.

Monetary Efficiency and Market Response

The acquisition announcement coincided with the discharge of Cardinal Well being’s This autumn 2025 financials. The corporate’s income per share had been $2.08, which beat the forecasted $2.03. Nonetheless, quarterly income had been $60.2B, falling in need of the $60.92B forecast. This prompted a pre-market inventory drop of greater than 11% on August 12. Since then, the share worth has recovered barely, with a drop of round 6% to $147.05 per share, down from $157.66 per share at market shut on August 11.