Cardinal Health Announces $1.9B Acquisition of Solaris Health

Cardinal Health revealed today that The Specialty Alliance, its platform for managing multi-specialty management services (MSO), has finalized an agreement to purchase Solaris Health, recognized as the nation’s foremost urology MSO, from Lee Equity Partners along with the physician stakeholders of Solaris Health.

This deal boosts Cardinal Health’s multi-specialty expansion strategy by broadening the footprint of The Specialty Alliance, under the leadership of CEO James Weber. Alongside the recent acquisitions of Urology America, Potomac Urology, and the newly completed purchase of Academic Urology & Urogynecology, acquiring Solaris Health delivers prompt scale to the Urology Alliance within The Specialty Alliance.

Cardinal Health will contribute roughly $1.9 billion in cash to The Specialty Alliance to facilitate the acquisition and will hold about three-fourths ownership of The Specialty Alliance following its purchase of Solaris Health. Physicians from Solaris Health, along with several members of its leadership team, will join GI Alliance’s physician owners and management as equity partners and operators within The Specialty Alliance.

Solaris Health works with over 750 providers across more than 250 practice sites in 14 states, maintaining a strong presence in the local communities it serves. Its robust business model and varied revenue streams stem from supporting a wide range of supportive services, backed by a nationwide MSO framework.

Jason Hollar, CEO of Cardinal Health, emphasized that boosting growth in the specialty segment remains the company’s foremost priority. He noted that urology is a particularly appealing specialty for the business and said Cardinal Health is ready to serve community urologists comprehensively through the combined strengths of Cardinal Health Specialty Networks and The Specialty Alliance.

Dr Weber stated that establishing the Urology Alliance within The Specialty Alliance represented an important move in broadening their multi-specialty approach to address patient needs in more communities. 

From his perspective as a physician, he emphasized that unified and streamlined care was essential for achieving better outcomes. By incorporating Solaris Health’s leading urology network into their system, he noted, specialty providers would be able to dedicate more time and energy to patient care. He added that this collaboration advanced a model aimed at empowering doctors and upholding the highest standards of treatment.

Gary Kirsh, CEO of Solaris Health, stated that becoming a part of The Specialty Alliance’s Urology Alliance would improve their capacity to provide high-quality, patient-focused care through a physician-led national system. He explained that the collaboration broadens their network of urology providers, enabling medical specialists to improve care delivery and increase patient access to specialized services within their own communities.

Cardinal Health anticipates finalizing the deal by the close of 2025, contingent on meeting closing requirements, which include securing necessary physician and regulatory green lights. The company projects the acquisition will be modestly accretive to its non-GAAP earnings per share (EPS) within the first year after completion. Cardinal Health plans to factor the anticipated impact into its fiscal 2026 guidance once the deal is concluded.