Cardinal Health's $2.4B Solaris Acquisition Drives Urology Expansion Despite $390M Volume Ranking 265th
On August 15, 2025, Cardinal HealthCAH-- (CAH) saw a trading volume of $390 million, ranking 265th in market activity. The stock closed with a 0.41% decline, reflecting mixed investor sentiment amid strategic developments.
Cardinal Health announced the acquisition of SolarisSLSR-- Health for $2.4 billion, a leading urology management services organization (MSO) in the U.S. The deal adds over 750 providers across 250 locations in 14 states, expanding The Specialty Alliance’s network to 3,000 providers in 32 states. This move strengthens Cardinal’s position in urology, a high-growth specialty, and aligns with its multi-specialty care strategy. The acquisition is expected to close by year-end 2025 and is projected to be slightly accretive to non-GAAP earnings per share in the first 12 months post-close.
Funding for the deal will combine cash reserves and new debt, with a focus on deleveraging over 18–24 months. Solaris Health’s physicians and management will join The Specialty Alliance as equity holders, while its CEO, Gary Kirsh, will transition to a senior advisory role. Executives emphasized the partnership’s potential to enhance physician-led, patient-centered care through a national platform, with Cardinal’s CEO highlighting the strategic importance of urology in its growth agenda.
The acquisition aligns with CardinalCAH-- Health’s disciplined capital allocation framework, maintaining its leverage targets by fiscal 2026. The transaction requires physician and regulatory approvals before finalization. Meanwhile, the company’s Q4 2025 earnings highlighted strong performance across segments, with $2.5 billion in adjusted free cash flow and updated fiscal 2026 EPS guidance raised to $9.30–$9.50.
A backtest of a strategy buying the top 500 stocks by daily trading volume and holding for one day yielded a $2,550 profit from 2022 to the present. The maximum drawdown of -15.4% occurred on October 27, 2022, reflecting market volatility during that period.
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