Updated version 3 - Correction - Cencora will acquire US Oncology Network for 2.4 billions dollars

Analyst comments were added in paragraph 8

Sriparna Roy

Reuters, October 21 - Pharmaceutical distributor Cencora (COR.N) announced on Wednesday that it will acquire American Oncology Network (AONC.PK), a cancer care services provider, in a deal valuing the company at up to $2.4 billion, further expanding its presence in community oncology across the United States.

Cencora currently holds about 4% of AON and will purchase all remaining shares it does not yet own. The company's stock price fell by more than 1%.

With growing demand for care outside hospital systems, community oncology practices—where physicians provide cancer care in outpatient settings—have become a hot area for mergers and acquisitions.

In 2024, Cardinal Health CAH.N agreed to acquire Integrated Oncology Network for $1.12 billion (link), while competitor McKesson MCK.N acquired a controlling interest in Core Ventures for $2.49 billion (link), a management services organization founded by Florida Cancer Specialists & Research Institute. In 2025, Cencora also gained majority control of OneOncology in a $5 billion deal (link).

According to Evercore ISI analyst Elizabeth Anderson, unlike OneOncology, which focuses on large clinics, AON targets smaller care providers. This acquisition will further diversify Cencora’s community oncology business.

The AON acquisition includes $2.3 billion paid at closing and up to $100 million in contingent value rights tied to certain conditions. Some AON shareholders can retain up to 25% equity through equity rollover arrangements, and Cencora is expected to pay about $1.7 billion for a 75% stake.

Cencora expects the acquisition to enhance its adjusted earnings per share in the second year after closing.

Barclays analyst Glen Santangelo said the deal's size suggests it is a continuation of the company’s current strategy rather than a transformational move.

Before reporting quarterly results on November 4, Cencora also updated its annual forecast to reflect strong performance in its U.S. healthcare solutions reportable segment.

According to data compiled by LSEG, the company expects adjusted earnings per share to be at least $17.90, near the high end of the previous guidance range of $17.75 to $17.95, while analysts’ average estimate stands at $17.89.

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