Cardinal Health Acquires Solaris Health to Bolster Urology MSO Platform.

Cardinal Health's multi-specialty MSO platform, The Specialty Alliance, is acquiring Solaris Health, the country's leading urology MSO. This adds over 750 providers to The Specialty Alliance and bolsters its leadership in the urology therapeutic area. Cardinal Health's MSO platforms will reach around 3,000 providers in 32 states upon transaction close.

Cardinal Health (NYSE: CAH) has announced a definitive agreement to acquire Solaris Health, the leading urology management services organization (MSO), for approximately $1.9 billion in cash. The acquisition will be executed through The Specialty Alliance, Cardinal Health's multi-specialty MSO platform, with Cardinal Health owning approximately 75% of the platform post-acquisition [1].

Solaris Health brings over 750 providers across 250 practice locations in 14 states to The Specialty Alliance. This acquisition, combined with recent acquisitions of Urology America, Potomac Urology, and Academic Urology & Urogynecology, significantly expands Cardinal Health's presence in the urology sector. Upon the transaction's close, Cardinal Health's MSO platforms will reach around 3,000 providers in 32 states [2].

The transaction is expected to close by the end of 2025 and be slightly accretive to Cardinal Health's non-GAAP earnings per share (EPS) in the first 12 months following close. Cardinal Health's disciplined capital allocation framework will finance the acquisition with a combination of cash on hand and new debt financing, with a focused approach to paying down debt over the next 18 to 24 months [1].

Solaris Health's resilient model and diverse revenue streams result from supporting a broad array of ancillary services, underpinned by a national MSO infrastructure. The acquisition will allow Cardinal Health to deliver exceptional, patient-centered care through a physician-led, national platform, enhancing access to specialized services in local communities [1].

Following the closing of the transaction, Dr. Gary Kirsh, CEO of Solaris Health, will retire and serve as a Senior Advisor to Cardinal Health. Lee Equity Partners, the firm that sold Solaris Health, expressed gratitude for Dr. Kirsh's visionary leadership and congratulated him on building the leading platform in urology [1].

References:
[1] https://www.prnewswire.com/news-releases/cardinal-health-announces-the-addition-of-solaris-health-the-countrys-leading-urology-mso-to-the-specialty-alliance-302527186.html
[2] https://www.stocktitan.net/news/CAH/cardinal-health-announces-the-addition-of-solaris-health-the-country-yy97789mihsg.html