Cardinal Health to acquire Specialty Networks for $1.2bn to expand specialty portfolio
Cardinal Health (NYSE: CAH), a leading healthcare services and products company, today revealed its definitive agreement to acquire Specialty Networks for $1.2 billion in cash. Specialty Networks, known for its technology-enabled multi-specialty group purchasing and practice enhancement organization, brings a wealth of clinical and economic value to independent specialty providers. The acquisition significantly strengthens Cardinal Health’s position in the specialty care market, adding thousands of Community Solar, school districts, and other enterprise customers across the Northeast, notably in New York, New Jersey, and Maine.
The acquisition of Specialty Networks underscores Cardinal Health’s strategic focus on expanding its Specialty business. By integrating leading-edge technologies, capabilities, and talent from Specialty Networks, Cardinal Health aims to address critical business and customer needs more effectively. This move is expected to complement Cardinal Health’s offerings in key therapeutic areas, enhancing its analytics capabilities and service offerings for downstream providers and accelerating upstream data and research opportunities with biopharma manufacturers.
Jason Hollar, CEO of Cardinal Health, emphasized the acquisition’s role in enhancing the company’s specialty strategy, providing new capabilities that strengthen the link between downstream and upstream services. Debbie Weitzman, CEO of Cardinal Health Pharmaceutical and Specialty Solutions, highlighted the unique service offerings and advanced technology solutions like PPS Analytics from Specialty Networks, which will enhance the value proposition for GPO members across therapeutic areas.
Cardinal Health to Acquire Specialty Networks, Enhancing Specialty Services and Technologies
Specialty Networks’ PPS Analytics platform stands out for its ability to transform vast amounts of data from various medical systems into meaningful insights using AI and modern analytics tools. This acquisition also accelerates the development of the Navista™ Network by Cardinal Health, aimed at supporting the clinical and operational needs of independent community oncologists.
Cardinal Health, with its global presence and extensive experience in the healthcare sector, operates one of the largest pharmaceutical supply chains in the U.S. Specialty Networks, on the other hand, offers a multi-specialty platform with integrated GPOs, life sciences, and research solutions, focusing on enhancing standards of care, clinical research, practice operations, and value-based care.
Subject to customary closing conditions, including regulatory approvals, the acquisition is anticipated to be accretive to Cardinal Health’s non-GAAP earnings per share 12 months following the close. This strategic move marks a significant milestone for Cardinal Health, reinforcing its commitment to delivering value for specialty physician practices and their patients.
The acquisition of Specialty Networks by Cardinal Health represents a pivotal development in the healthcare industry, highlighting the growing emphasis on specialized care. By leveraging Specialty Networks’ advanced technology and analytics capabilities, Cardinal Health is set to enhance its service offerings and address the evolving needs of healthcare providers and patients more effectively. This strategic partnership is poised to drive innovation and improve outcomes in the specialty care sector.