Cardinal Health Expands Specialty Medicine Footprint with $1.9B Solaris Health Acquisition

Cardinal Health, a leading pharmaceuticals and specialty products distributor, has announced a significant expansion of its multispecialty management services organization (MSO) platform through the acquisition of Solaris Health. The $1.9 billion deal, expected to close by the end of the year, marks another strategic move in Cardinal Health's ongoing efforts to strengthen its position in specialty medicine.

The Specialty Alliance Grows

Cardinal Health's multispecialty MSO platform, The Specialty Alliance, has entered into a definitive agreement to acquire Solaris Health, a urology-focused MSO, from Lee Equity Partners and Solaris Health physician owners. The acquisition will be financed through a combination of cash and new debt, with Cardinal Health providing approximately $1.9 billion to The Specialty Alliance to support the transaction.

Upon completion of the deal, Cardinal Health will own about 75% of The Specialty Alliance. The company anticipates that the acquisition will be slightly accretive to its non-GAAP earnings per share (EPS) in the first 12 months following the close.

Jason Hollar, CEO of Cardinal Health, emphasized the strategic importance of the acquisition, stating, "Accelerating Specialty growth remains our top priority. As we previously highlighted, urology is an attractive specialty for us, and we are well-positioned to meet the comprehensive needs of community urologists through the robust combined capabilities of The Specialty Alliance, Specialty Networks and Cardinal Health."

Expanding Reach and Capabilities

The Solaris Health acquisition significantly expands Cardinal Health's multispecialty MSO platform, adding more than 750 providers across over 250 practice locations in 14 states. This expansion follows recent acquisitions in the urology sector, including Urology America, Potomac Urology, and Academic Urology & Urogynecology.

Once the Solaris Health deal closes, Cardinal Health's MSO platforms will reach approximately 3,000 providers in 32 states, solidifying its position as a major player in the specialty medicine landscape. The company's executives highlighted Solaris Health's resilient model and diverse revenue streams, which result from supporting a broad array of ancillary services underpinned by a national MSO infrastructure.

Financial Performance and Future Outlook

Cardinal Health's recent financial results reflect the company's ongoing transformation and growth in specialty medicine. While fourth-quarter revenue remained relatively flat at $60.16 billion, the company posted a profit of $239 million, or $1 per share, compared to $235 million during the same quarter a year ago.

The pharmaceutical and specialty solutions segment saw profit growth of 11% to $535 million in the fourth quarter, driven by the acquisition of MSO platforms and contributions from brand and specialty products. This growth was partially offset by the expiration of a significant contract with UnitedHealth Group's OptumRx last year.

In light of its recent acquisitions and strong performance in specialty medicine, Cardinal Health has raised its 2026 outlook for non-GAAP diluted EPS to $9.30 to $9.50, a 20-cent increase from the preliminary outlook previously communicated during the company's 2025 investor day.