Cardinal Health scoops up two companies for $3.9B
Multinational healthcare company Cardinal Health announced two major acquisitions this week, totaling $3.9 billion.
Cardinal Health is purchasing a 71% majority stake in the gastroenterology network GI Alliance, which will now merge its platform under the Cardinal Health banner. GI Alliance operates more than 345 gastroenterology clinics across 20 states and is home to over 900 physicians.
That deal was finalized for $2.8 billion.
Cardinal Health added that it has "the ability to exercise a call right to purchase up to 100% of the remaining outstanding equity" in GI Alliance at a later date, meaning the remaining 29% of the company.
The global healthcare giant is also buying Advanced Diabetes Supply Group outright, an organization that provides information, care coordination, and products for patients managing diabetes and related symptoms. Roughly 500,000 patients nationwide rely on its services.
That deal will close for $1.1 billion.
Cardinal Health said the deals will allow it to expand into both multispecialty and at-home care services. More details are expected to be announced at the company’s virtual investor event in June 2025.
“Over the past two years, we have improved operating performance and financial flexibility by executing on our focused growth strategy,” Jason Hollar, chief executive officer of Cardinal Health, said in a statement. “These transactions enhance Cardinal Health's ability to deliver a greater value proposition for providers and patients, while representing the next step in our ongoing focus to drive sustainable shareholder value creation.”
Both transactions await regulatory approval.
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