Cencora Agrees to Acquire Oncology Network in Deal Valued at $2.4 Billion
Key Facts
Cencora announced on October 21, 2026, that it had signed a definitive agreement to acquire American Oncology Network, a physician-led network with more than 350 oncology care providers in 21 states. The transaction has an enterprise value of $2.4 billion, according to a Cencora statement, but the agreement has not yet resulted in a completed acquisition. The value includes $2.3 billion at closing and contingent value rights of up to $100 million, subject to their conditions being met. The company said it would acquire the ownership interests it does not currently hold, as it owns about 4% of the network. The agreement places the expansion of community oncology services within Cencora's strategy to expand its practice management platform and support patients' access to care.
The amount Cencora pays at closing could change if some of the network's shareholders retain a stake through a stock rollover. The company said it expects to pay about $1.7 billion to raise its ownership to 75% if those shareholders retain 25% of American Oncology Network. This scenario reflects current shareholders remaining in the ownership structure after the deal is completed. The announced enterprise value therefore differs from the amount expected to be paid in cash under the stock rollover assumption. These percentages and amounts remain subject to the final structure at closing.
Cencora said the network's addition would extend its presence into 12 additional states and expand its oncology services management capabilities. It added that clinical decisions would remain with American Oncology Network physicians, while the agreement aims to strengthen support for independent practices and expand patients' access to community care. The network's chief executive said the agreement “aims to give our teams greater support, more resources and more time to care for patients.” This comes as Cencora continues to invest in specialty care management platforms. The company acquired a majority stake in OneOncology in February 2026 for about $4.6 billion in cash, with affiliated practices and management retaining a minority stake.
Cencora expects the acquisition to become accretive to adjusted diluted earnings per share in the second year after completion. The company did not specify the expected increase in its deal announcement, but tied the positive impact to that period after closing. The deal follows strong performance in the third fiscal quarter ended June 30, 2026, as revenue rose 5.1% year over year to $84.8 billion. Adjusted diluted earnings per share also increased 12% to $4.48. In U.S. Healthcare Solutions, revenue rose 4.9% and operating income increased 15.9% year over year, with the February acquisition of OneOncology contributing to operating income growth.
Cencora raised its fiscal 2026 adjusted diluted earnings per share forecast to at least $17.90, at the upper end of its previous range of $17.75 to $17.95. The update came in the deal announcement, while fiscal 2025 results reflect a broader growth base: revenue of $321.3 billion, up 9.3%, and adjusted diluted earnings per share of $16, up 16.3%. The chief executive had linked third-quarter results to the company's drug-centered strategy. The oncology network deal adds another avenue for expanding its specialty medical practice management business. Cencora is scheduled to discuss its fiscal 2027 outlook on its earnings call on November 4, 2026.
Completion of the agreement remains subject to customary closing conditions, including obtaining required regulatory approvals and approval from American Oncology Network shareholders. The network's board approved the agreement following a unanimous recommendation from an independent and impartial special committee. Cencora's announcement did not specify a date for completing the deal. As for the stock, EL7 data recorded Cencora's close at $325.37 on October 27, 2026. The company scheduled its fourth-quarter fiscal 2026 results announcement for November 4 before trading opens on the New York Stock Exchange, with an earnings discussion call set to begin at 8:30 a.m. Eastern time.