Cardinal Health to Acquire Solaris Health in $1.9 Billion

Published: 13 Aug 2025

Author: Precedence Research

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The healthcare sector’s radar lit up with a major signal: Cardinal Health is going big. The company just announced a $1.9 billion cash acquisition of Solaris Health, an aggressive push into the high-margin world of specialty healthcare. But while the strategic narrative screams “future growth,” the market’s immediate reaction was complicated.

So, what’s fueling this move? Cardinal Health will purchase a 75% share in Solaris Health, one of the biggest networks of urology service providers in the country, through its subsidiary, The Specialty Alliance. A $500 million equity rollover from Solaris physicians raises the deal's implied total value to $2.04 billion, keeping important operators on board and invested. Solaris has a significant administrative and management presence for specialty care with over 750 locations in 14 states.

In 2024, by paying about $1.12 billion to acquire Integrated Oncology Network, Cardinal solidified its strategic shift into more complex, higher-margin medical services like urology and oncology. These actions are a part of a larger wager that aims to capture value outside of low-margin drug distribution and establish itself in markets where the depth of patient networks and expertise drive profitability.

Investors’ verdict? Immediate turbulence. Shares of Cardinal Health dropped nearly 6% in early trading, triggered not just by acquisition sticker shock but by weaker-than-expected Q4 results. Revenue for the quarter came in at $60.16 billion, missing Wall Street estimates and reflecting the sting of losing a major customer contract with OptumRx.

But here’s the twist: In fact, earnings exceeded expectations. Cardinal beat the consensus estimate of $2.04 per share with an adjusted profit of $2.08 per share. Furthermore, management increased its adjusted EPS forecast for 2026 from $9.10 to $9.30 to $9.30 to $9.50.

How will this be financed? The Solaris deal will be supported by both new debt and cash on hand, indicating that Cardinal is prepared to use its balance sheet to gain specialty dominance. With regulatory approval, the acquisition should close by year's end.

It is evident to industry observers that the competition for leadership in specialty healthcare has intensified, making this more than just another consolidation headline. In physician-aligned specialty networks where command over patient flows and service integration can result in significant profits, Cardinal is solidifying its position by purchasing Solaris.
Still, there are warning signs. The OptumRx contract loss serves as a reminder that even industry titans can suffer setbacks in their core areas. There are differing opinions among analysts. While some view this as a daring diversification that might yield significant profits, others caution about integration risks and the difficulty of compensating for drops in distribution revenue with specialty growth.

There's no denying that Cardinal Health is not playing defense. We're going for the fences. The success or failure of this $1. 9B specialty gambit will rely on how well it is executed, how well it retains physicians, and how well it leverages Solaris' extensive network to increase efficiency and market reach.