Cencora to acquire American Oncology Network in $2.4 billion deal

(Corrects paragraph 4 to say McKesson acquired a controlling interest in Florida Cancer Specialists' unit, not that ​it bought the unit)

Oct 21 (Reuters) - Drug distributor Cencora said on Wednesday it would acquire American Oncology Network in a deal valuing the cancer ‌care provider at up to $2.4 billion, deepening its reach in community oncology across the United States.

Cencora, which currently owns ⁠about 4% of AON, will acquire ​all of the equity interests that it ⁠does not currently own.

Community oncology, where independent physicians provide cancer care in outpatient settings, ‌has become a hotbed ‌for dealmaking as companies seek to capitalize on growing demand for cancer ⁠treatment and broaden access to care outside hospital ⁠settings.

In 2024, Cardinal Health agreed to acquire community cancer center operator Integrated Oncology Network for $1.12 billion in cash. Rival McKesson also acquired controlling interest in Core Ventures, the management services organization established by Florida Cancer Specialists & Research Institute for $2.49 billion, while Cencora in 2025 took majority control of OneOncology in a $5 billion deal.

"We like ‌the diversification within community oncology that this transaction brings in ​that AON is more focused on small oncology providers and the solution set that best works for them vs OneOncology's focus on larger community oncology providers and their needs," said Evercore ISI analyst Elizabeth Anderson.

The AON deal consists of $2.3 billion payable at closing and contingent value rights worth up to $100 million tied to certain conditions. Certain AON shareholders may retain up to a 25% equity stake through ​a rollover arrangement, in which case Cencora expects to pay about $1.7 billion to raise its ownership ‌to 75%.

Cencora expects ‌the acquisition ⁠to boost its adjusted profit per share in the second year after the deal closes.

The company also updated its annual forecast to reflect the strength of the US healthcare solutions reportable segment.

It expects adjusted earnings per share to be at least $17.90, near the high ‌end of the previous range ​of $17.75 to $17.95. Analysts expect annual profit of $17.89 per ‌share, according to data ⁠compiled by LSEG.

Cencora ​is scheduled to report quarterly earnings on November 4.

(Reporting by Sriparna Roy in Bengaluru; Editing by ​Shilpi Majumdar)

Related topics