Cardinal Health has announced an agreement to acquire Solaris Health, the top urology management services organization in the country. The acquisition will enhance The Specialty Alliance, a multi-specialty management services platform led by CEO Dr. James Weber.
To support this acquisition, Cardinal Health will provide about $1.9 billion in cash. After the deal, Cardinal Health will own approximately 75% of The Specialty Alliance. Physicians from Solaris Health and some of its management will join as equity holders and operators within The Specialty Alliance.
Solaris Health serves over 750 providers at more than 250 practice locations across 14 states. Its strong business model comes from offering a variety of services backed by a national MSO structure.
After the acquisition, Dr. Kirsh will step down from leading Solaris Health and will become a Senior Advisor to Cardinal Health.
Cardinal Health anticipates that this transaction will close by the end of 2025, subject to obtaining the necessary approvals. The acquisition is expected to have a slight increase in Cardinal Health’s earnings per share in the first year following the closing. The company will update its fiscal year 2026 guidance following the completion of the deal.
Cardinal Health also confirmed its focus on responsible spending. It plans to fund the acquisition using cash and new debt. Over the next 18 to 24 months, it intends to reduce its debt while continuing with its share repurchase plans. The company aims to maintain its desired debt levels by the end of fiscal 2026.
Advisors: Goldman Sachs served as financial advisor to Cardinal Health on the acquisition of Solaris Health, and Skadden, Arps, Slate, Meagher & Flom LLP and Katten Muchin Rosenman LLP served as legal advisors on the transaction. Centerview Partners served as financial advisor to Solaris Health, and McDermott, Will & Emery served as legal advisor on the transaction. Goldman Sachs, BofA Securities, and Wells Fargo serve as lead advisors on financing matters related to the acquisition.
KEY QUOTES:
“Accelerating Specialty growth remains our top priority. As we previously highlighted, urology is an attractive specialty for us, and we are well-positioned to meet the comprehensive needs of community urologists through the robust combined capabilities of The Specialty Alliance, Specialty Networks and Cardinal Health.”
Jason Hollar, CEO, Cardinal Health
“The formation of our Urology Alliance within The Specialty Alliance marks a significant step in expanding our multi-specialty model to meet patient needs across more communities. As a physician, I know firsthand that integrated, coordinated care is critical to improving outcomes. By bringing Solaris Health’s leading urology network into our platform, we’re helping specialty providers focus more of their time and energy where it matters most, on their patients. Together, we’re advancing a model that empowers physicians and prioritizes the highest standards of care.”
Dr. Weber
“Joining The Specialty Alliance’s Urology Alliance strengthens our ability to deliver exceptional, patient-centered care through a physician-led, national platform. This partnership expands our collaborative network of urology providers, allowing physicians to optimize care delivery and enhance patient access to specialized services in their local communities.”
Gary Kirsh, MD, CEO, Solaris Health
“Lee Equity would like to thank Dr. Kirsh for his visionary leadership and congratulate him on building the leading platform in urology. Dr. Kirsh has been a steadfast champion of independent medicine for his entire career, and we are proud to see Solaris Health and its exceptional physician base continue this legacy by joining the Urology Alliance.”
Christian Chauvet, Partner, Lee Equity
