San Francisco-based McKesson Corporation, a healthcare services and information technology company, and US Oncology (The Woodlands, Texas), an integrated oncology company, announced that the two companies have signed a definitive agreement under which McKesson will purchase all outstanding shares of US Oncology for cash. The total transaction, including the assumption of US Oncology’s outstanding debt, is valued at approximately $2.16 billion. The combined organization will focus on providing a comprehensive offering of solutions for the oncology industry, one of the fastest-growing segments in healthcare.
The parties are targeting a closing by the end of McKesson’s third fiscal quarter, ending Dec. 31, 2010, subject to customary conditions, including all necessary regulatory clearances. Excluding transaction and integration costs, the acquisition is expected to be neutral to McKesson’s diluted earnings per share in its current fiscal year, and modestly accretive beginning in McKesson’s fiscal year 2012.
The unified organization will bring together the collective capabilities of McKesson and US Oncology to provide oncology customers access to:
- Leading evidence-based medicine offerings that drive continued improvements in clinical outcomes and enable value-based reimbursement;
- Expanded clinical expertise, clinical research and personalized medicine offerings;
- Integrated, efficiency-enabling healthcare information technology, including the iKnowMed™ and Lynx ® technology platforms, facilitating outcomes measurement, reporting, and advanced product and inventory management;
- Innovative practice-management solutions and consultative capabilities that allow independent community specialists to thrive in a changing healthcare environment; and
- Superior distribution capabilities and supply-chain expertise.
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