Cardinal Health is buying Solaris Health for about $1.9 bill
_Wendy
Updated at: 21 hours ago
{"content":"Cardinal Health is buying Solaris Health for about $1.9 billion in cash to grow its business in managing doctor practices. The deal will be done through Cardinal’s Specialty Alliance group, which will now own 75% of Solaris. This adds over 750 urology doctors to its network, bringing the total to around 3,000 doctors in 32 states.
Paid with Cardinal’s existing cash
Expected to close by the end of 2025
Should slightly boost earnings in the first year
Earnings rose 13% to $2.08 per share, beating expectations
Revenue stayed flat at $60.16 billion, slightly below forecasts
Cardinal raised its earnings forecast for next year to $9.30–$9.50 per share
Even with the stronger earnings outlook, Cardinal’s stock dropped about 9% in morning trading. Investors were concerned about the revenue miss and the high cost of the Solaris deal.
Cardinal says this move will help it grow faster in specialty medical services and strengthen its support for doctor practices that offer higher profits.
#SolarisHealth
#SpecialtyAlliance
#Cardinal
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