Cardinal Health To Provide $1.9B To Specialty Alliance Division To Enable Solaris Health Acquisition: More Details Inside

Pharmaceutical distributor Cardinal Health (CAH) on Tuesday said its multi-specialty management services organization (MSO) platform is set to acquire healthcare platform Solaris Health.

Cardinal Health will provide approximately $1.9 billion in cash to its MSO platform, called The Specialty Alliance, for the acquisition. Once the acquisition is completed, Cardinal will own about 75% of The Specialty Alliance.

The company said that it intends to finance the acquisition with a combination of cash on hand and new debt financing.

Shares of CAH traded 6% lower in Tuesday’s pre-market session at the time of writing.

The Specialty Alliance will buy Solaris Health from Lee Equity Partners and Solaris Health's physician owners. The deal will add over 750 providers across more than 250 practice locations in 14 states to its MSO platform, Cardinal said.

Solaris CEO Gary Kirsh will retire from his role upon the closing of the transaction and serve as a Senior Advisor to Cardinal Health. The deal is expected to close by the end of the year, subject to conditions including the receipt of necessary approvals. Cardinal said that the deal is expected to be “slightly accretive” to its adjusted earnings per share in the first 12 months following close.

On Stocktwits, retail sentiment around CAH jumped from ‘bearish’ to ‘bullish’ territory over the past 24 hours, while message volume rose from ‘low’ to ‘normal’ levels.

Separately, the company on Tuesday reported its fourth-quarter results with revenue of $60.2 billion, falling short of a Wall Street estimate of $60.92 billion. Adjusted earnings per share, however, came in at $2.08, above an expected $2.03.

For fiscal year 2026, the company now expects adjusted earnings per share of $9.30 to $9.50, up from its previous guidance of $9.10 to $9.30, and growth in revenue across its pharmaceutical, medical products, and other segments.

CAH stock is up by 33% this year and by about 57% over the past 12 months. 

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