Healthcare company Cardinal Health agreed to purchase Solaris Health in a $1.9 billion cash transaction.
Cardinal Health Acquires Solaris Health in $1.9 Billion Deal
Cardinal Health, an American healthcare company, has announced its acquisition of Solaris Health, a UK-based medical services agency, for $1.9 billion in cash. This significant move in the healthcare industry is expected to be finalized at the end of 2025, subject to customary closing conditions.
The acquisition is strategically bolstering Cardinal Health’s presence in urology, a high-growth specialty. The deal will provide Cardinal Health with access to community urologists in 14 states where Solaris Health's services are currently available. This expansion is expected to significantly impact Cardinal Health’s financial performance and ownership structure.
Upon closing, Cardinal Health will own approximately 75% of The Specialty Alliance, an American natural medicine and experts society. The acquisition will expand The Specialty Alliance's scale by adding over 750 providers across more than 250 locations in 14 states. This will increase the network to roughly 3,000 providers in 32 states, making The Specialty Alliance a larger, physician-aligned multi-specialty platform with enhanced financial scale and operational reach.
The acquisition is also expected to be slightly accretive to Cardinal Health’s non-GAAP EPS within the first year post-transaction, supporting a stronger, more diversified specialty care platform centered on urology. Solaris Health’s physician owners and some management will join The Specialty Alliance as equity holders and operators, aligning management interests and strengthening physician-led governance within the enlarged MSO.
Some of the Solaris Health employees will join The Specialty Alliance as part of the acquisition, bringing valuable expertise and experience to the newly expanded organisation. The acquisition of The Specialty Alliance by Cardinal Health involves the purchase of a management service organization.
The purchase is being facilitated by Lee Equity Partners. The acquisition of Solaris Health by Cardinal Health is a lucrative deal, valued at $1.9 billion, and is expected to expand Cardinal Health's reach and influence in the healthcare market.
However, it's worth noting that Cardinal Health's top-selling products primarily focus on treating cancer and rheumatoid arthritis. The acquisition of Solaris Health is not expected to have an immediate impact on these product lines, but it does represent a strategic move to diversify Cardinal Health's portfolio and strengthen its position in the urology market.
The acquisition comes at a time when the American pharma company has lost around 9% shares in premarket after revealing Q4 results of 2025. Whether the acquisition will help reverse this trend remains to be seen. The deal also marks a significant shift in the healthcare industry, as more companies look to consolidate and expand their offerings in response to changing market dynamics and evolving patient needs.
In related news, the CEO of Solaris Health has stepped down post-acquisition and transitioned to a senior advisory role at Cardinal Health. The American wing of Solaris Health provides management assistance and administrative services, and it is expected that these services will continue to be a valuable asset to Cardinal Health moving forward.
In conclusion, the acquisition of Solaris Health by Cardinal Health is a significant move in the healthcare industry, expanding Cardinal Health’s reach and influence, and reshaping The Specialty Alliance into a larger, physician-aligned multi-specialty platform with enhanced financial scale and operational reach.
- Cardinal Health, a US-based healthcare company, has acquired Solaris Health, a UK medical services agency, for $1.9 billion, a move expected to impact both companies' financial performance and ownership structures.
- The acquisition bolsters Cardinal Health's presence in the high-growth urology specialty, giving them access to community urologists in 14 states where Solaris Health's services are currently available.
- Upon closing, Cardinal Health will own approximately 75% of The Specialty Alliance, an American natural medicine and experts society, expanding its scale and making it a larger, more diversified specialty care platform.
- The deal is slightly accretive to Cardinal Health's non-GAAP EPS within the first year, supporting a stronger, more diversified specialty care platform centered on urology.
- Cardinal Health's top-selling products primarily focus on treating cancer and rheumatoid arthritis, but the acquisition represents a strategic move to diversify their portfolio and strengthen their position in the urology market.
