Cardinal Health Buys Solaris for $1.9 Bn

The transaction is expected to close by the end of 2025, subject to regulatory and physician approvals.

Cardinal Health will acquire Solaris Health for about $1.9 billion in cash through its subsidiary, The Specialty Alliance.

The deal expands Cardinal’s presence in specialty healthcare, particularly in urology care.

Solaris is one of the largest management services organizations (MSOs) in the United States.

It supports more than 750 providers across 14 states. Its network includes physician practices and care centers that focus on urology and related specialties.

The sellers are Solaris’ physician owners and Lee Equity Partners, the private equity firm that has backed the company since 2018.

The transaction is expected to close by the end of 2025, subject to regulatory and physician approvals.

Once complete, Cardinal Health will own about 75% of the healthcare management unit after the acquisition.

The announcement came as Cardinal released its quarterly earnings. Revenue was $60.16 billion, slightly below Wall Street’s estimate of $60.89 billion.

Despite the earnings beat, Cardinal’s stock fell nearly 10% after the update. Investors focused on the loss of a major contract with OptumRx, which weighed heavily on results.

Without that contract expiration, Cardinal said its revenue would have risen more than 18% year over year. Management also confirmed that the Solaris acquisition will be slightly accretive to earnings in its first year after closing.

Expanding into Specialty Care Platforms

Cardinal Health has traditionally been known for its vast distribution network in pharmaceuticals and medical products.

In recent years, it has been moving into specialty services.

The Specialty Alliance, its MSO platform, is building a presence in areas such as oncology, rheumatology, and now urology. The addition of Solaris makes Cardinal one of the largest players in urology management services in the U.S.

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