Cencora has signed a definitive agreement to acquire American Oncology Network, a physician-led network of more than 350 oncology providers across 21 states, in a transaction valuing AON at approximately $2.4 billion.
The deal is expected to expand Cencora’s physician-led oncology management services organization platform while extending its presence into 12 additional states. American Oncology Network supports independent oncology practices with services, technology, and infrastructure intended to help physicians deliver community-based cancer care.
Cencora currently owns approximately 4% of AON and has agreed to acquire the remaining equity interests. The $2.4 billion enterprise value consists of approximately $2.3 billion payable at closing and contingent value rights of up to $100 million, subject to specified conditions.
Certain AON shareholders may elect to roll over equity representing up to 25% of the company. Assuming those shareholders retain a 25% interest, Cencora expects to pay approximately $1.7 billion at closing to increase its ownership position to 75%.
Cencora expects the acquisition to be accretive to adjusted diluted earnings per share in the second year after closing.
AON operates a physician-led model designed to support independent oncology practices while keeping clinical decisions with physicians. Cencora said the transaction is expected to provide AON with additional resources to expand integrated patient services, enhance technology and practice support capabilities, and continue adding physicians and practices.
The acquisition is subject to customary closing conditions, including regulatory clearances and approval from AON shareholders. AON’s Board of Directors approved the agreement following the unanimous recommendation of a special committee composed of independent and disinterested directors.
Citi is serving as lead financial advisor to Cencora, while J.P. Morgan Securities is also advising the company. Holland & Knight and Sidley Austin are serving as legal advisors.
Moelis & Company is serving as exclusive financial advisor to the special committee of AON’s Board of Directors. McDermott Will & Schulte is serving as legal counsel to AON, while Cleary Gottlieb Steen & Hamilton is advising the special committee.
Separately, Cencora raised its fiscal 2026 adjusted earnings outlook, citing strength in its U.S. Healthcare Solutions segment. The company now expects adjusted diluted earnings per share of at least $17.90, compared with its previous range of $17.75 to $17.95.
KEY QUOTES:
“The acquisition of AON will expand our physician-led oncology MSO and support of care in communities across the country. AON serves as a trusted partner to oncology practices with a differentiated solution set designed to meet their comprehensive needs. With the addition of AON to our leading MSO network, we will enhance our capabilities for independent practices, strengthening patient access to high-quality, cost-effective care, while fortifying our growth platform to drive long-term value for our stakeholders.”
Robert P. Mauch, President And Chief Executive Officer Of Cencora
“Our physicians, clinicians and care teams, and the patients they serve, have always been at the heart of AON, and this agreement is about giving them more support, more resources and more time for patient care. This is the next chapter of the same mission: high-quality, accessible cancer care delivered close to home, led by physicians who know their patients best. As an investor in AON since 2020 and a leader in oncology, Cencora understands that mission and will partner with us to accelerate that goal.”
Todd Schonherz, Chief Executive Officer Of American Oncology Network
“For patients facing a cancer diagnosis, ensuring dependable access to advanced and innovative therapy is crucial to their survival. This partnership will bolster AON’s mission of sustainably delivering the highest quality care to patients in their own communities.”
Stephen “Fred” Divers, M.D., Chief Medical Officer Of American Oncology Network
