Cencora to Acquire OneOncology to Expand Community Oncology Solutions

Core Insights - Cencora, Inc. (COR) has agreed to acquire a majority of OneOncology's equity for $3.6 billion, enhancing its strategic control and supporting its pharmaceutical-centric strategy [2][9] - The acquisition is expected to strengthen COR's ability to support specialty physicians and improve cancer care navigation and access to novel therapies [5][12] Financial Guidance - Management has raised long-term guidance for adjusted operating income growth to 7%-10% and adjusted diluted EPS growth to 10%-14% for COR's U.S. Healthcare Solutions segment [3][9] - The acquisition is projected to have a neutral impact on fiscal 2026 adjusted earnings per share, with expectations closer to the lower end of the range of $17.45 to $17.75 [11] Market Position and Performance - COR's market capitalization stands at $66.53 billion [6] - Following the acquisition announcement, COR shares have decreased by 2.8%, although they have risen 14.8% over the past six months, outperforming the industry and the S&P 500 [4] Acquisition Details - The transaction values OneOncology at an enterprise value of $7.4 billion and an equity value of approximately $6 billion, with COR planning to pay off $1.3 billion of OneOncology's existing corporate debt [10] - Funding for the acquisition will primarily come from new debt, with COR pausing share repurchases to maintain its investment-grade credit rating [9][11] Industry Outlook - The oncology market is projected to reach $225.01 billion by 2025, with a CAGR of 11.5% through 2034, driven by the increasing prevalence of cancer [13]