Cardinal Health, the global healthcare conglomerate, has made another large push into the healthcare provider space. On August 12, through its subsidiary The Specialty Alliance, Cardinal Health bought Solaris Health in a $1.9 billion deal, its fifth deal since the start of 2024.
Solaris Health is one of the largest urology and management service organizations in the United States, with more member physicians than any other provider of urological and specialty services. Its physicians span 14 states (Colorado, Florida, Georgia, Illinois, Indiana, Kentucky, Maryland, Michigan, New York, North Carolina, Ohio, Pennsylvania, South Carolina and Washington), with more than 750 members.
After the deal closes, Solaris Health physicians and several members of management will join GI Alliance physician owners and management as equity holders and operators in The Specialty Alliance.
For its part, Solaris Health has been a prolific acquirer in the healthcare M&A space, adding 13 new physician groups to its network since 2021. The group was formed in 2020 by Lee Equity Partners after the private equity group bought and combined Integrated Medical Professionals and The Urology Group in a $240 million deal.
Cardinal Health’s acquisition spree began with the acquisition of Specialty Networks, LLC (the subsidiary above) in January 2024 for $1.2 billion in cash from Bain Capital. It followed that deal with a small transaction in May 2024 for Innara Health, a neonatal medical device company, for an undisclosed sum. In September, Cardinal announced another major deal, spending $1.1 billion to absorb Integrated Oncology Network LLC, a radiation oncology management and cancer center development company.
The company was busy the following November, announcing two deals valued at more than $1 billion. It purchased Advanced Diabetes Supply Group, a national distributor of specialized diabetes supplies, from Court Square Capital Partners, for $1.1 billion, and GI Alliance, a physician-led and majority physician-owned GI practice management company, from Apollo Global Management, for $2.8 billion.
