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 practices, where independent physicians provide cancer care in outpatient settings, have become increasingly attractive acquisition targets 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 bought a unit of Florida Cancer Specialists & Research Institute for $2.49 billion, while Cencora in 2025 took majority control of cancer care network OneOncology in a $5 billion deal.
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 drug distributor also updated its annual forecast to reflect the strength of the US healthcare solutions reportable segment.
It now expects adjusted earnings per share to be at least $17.90, which is near the high end of the previous range of $17.75 to $17.95. Analysts, on average, expect annual profit of $17.89 per share, according to data compiled by LSEG.
Cencora is scheduled to report its quarterly earnings on November 4.
(Reporting by Sriparna Roy in Bengaluru; Editing by Shilpi Majumdar)
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