Healthcare information systems firm McKesson has inked a definitive agreement to purchase cancer treatment center operator and research giant US Oncology for $2.16 billion in cash.
The combined organization will focus on providing a comprehensive range of offerings for the oncology industry, according to McKesson of San Francisco and US Oncology.
The combined McKesson Specialty Care Solutions business will be led by Bruce Broussard, US Oncology chairman and CEO, and will be headquartered in The Woodlands, TX, with continuing operations in the San Francisco Bay Area and other locations throughout the country, the companies said.
Broussard will report to Paul Julian, executive vice president and group president of McKesson. McKesson said it will continue to operate the United Network of US Oncology, including US Oncology's Comprehensive Strategic Alliance offering, US Oncology Research, and other services under the US Oncology brand name.
The firms hope to close the acquisition, which is subject to customary conditions and all necessary regulatory clearances, by the end of McKesson's fiscal third quarter (end-December 31). Excluding transaction and integration costs, the purchase is expected to be neutral to McKesson's diluted earnings per share in its current fiscal year and modestly accretive beginning in fiscal 2012.
In connection with the deal, the companies anticipate that substantially all of US Oncology's debt will be repaid or refinanced.
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