McKesson announced this morning that it will buy US Oncology in a deal valued at $2.16 billion, including debt, from its private equity owners. The transaction is expected to close by December 31.
McKesson says the acquisition will have a modestly positive impact on its earnings starting in FY2012.
US Oncology, based in The Woodlands, TX, has annual revenue of around $3.5 billion and has relationships with 1,300 community-based oncologists. Its technology offerings include the iKnowMed oncology EHR, a physician collaboration portal, and clinical trials matching.
McKesson chairman and CEO John Hammergren said this about the acquisition:
McKesson is committed to improving the health and vitality of our customers, with the ultimate goal of improving the health of patients. The combination of US Oncology and McKesson will enhance our ability to achieve these goals in one of the most important segments in healthcare. Community oncology practices need strategic support that offers not only technology and distribution solutions, but also value-added clinical and reimbursement management services that enable them to provide the highest-quality, most efficient care to their patients. With this acquisition, McKesson will offer a compelling suite of services and solutions to community oncologists and other partners in the rapidly evolving specialty business.
US Oncology CEO Bruce Broussard, who will stay on to run the new McKesson unit, was quoted as saying,
With the health-care marketplace moving rapidly toward reimbursement based on quality and cost-effectiveness, our physician customers need access to deep clinical, operational and information technology capabilities to create integrated networks that continually enhance the quality of care in a cost-efficient manner. In joining McKesson, we are building the scale and expertise necessary to empower our customer base to shape the future of health care.