Cencora to acquire American Oncology Network in $2.4 billion deal

Oct 21 — Drug distributor Cencora said on Wednesday it would acquire American Oncology Network ​in a deal valuing the cancer care provider at up to $2.4 billion, deepening its reach in community oncology across the United ‌States.

Cencora, which currently owns about 4% of AON, will acquire all of the equity interests ⁠that it does not currently ​own.

Community oncology practices, where independent ⁠physicians provide cancer care in outpatient settings, have become increasingly attractive ‌acquisition targets as companies ‌seek to capitalize on growing demand for cancer treatment and ⁠broaden access to care outside hospital ⁠settings.

In 2024, Cardinal Health agreed to acquire community cancer center operator Integrated Oncology Network for $1.12 billion in cash. Rival McKesson also bought a unit of Florida Cancer Specialists & Research Institute for $2.49 billion, while Cencora in 2025 took majority control of cancer care network OneOncology ‌in a $5 billion deal.

The AON deal consists ​of $2.3 billion payable at closing and contingent value rights worth up to $100 million tied to certain conditions. Certain AON shareholders may retain up to a 25% equity stake through a rollover arrangement, in which case Cencora expects to pay about $1.7 billion to raise its ownership to 75%.

Cencora expects the acquisition to boost its adjusted profit ​per share in the second year after the deal closes.

The drug distributor ‌also updated its ‌annual forecast ⁠to reflect the strength of the US healthcare solutions reportable segment.

It now expects adjusted earnings per share to be at least $17.90, which is near the high end of the previous range of $17.75 to $17.95. Analysts, on ‌average, expect annual profit of $17.89 ​per share, according to data compiled ‌by LSEG.

Cencora is scheduled ⁠to report ​its quarterly earnings on November 4.

(Reporting by Sriparna Roy in Bengaluru; Editing by ​Shilpi Majumdar)

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