McKesson to Acquire U.S. Oncology for $2.1B

Healthcare information technology giant McKesson Corp. has announced it is scheduled buy US Oncology in a cash deal valued at more than $2.1 billion.

The transaction, which is expected to be finalized by the end of the year, includes the purchase of all outstanding shares of US Oncology, and the assumption of all of the company's outstanding debts.

McKesson, ranked 14th on the FORTUNE 500, said the acquisition of US Oncology will provide oncology customers access to:

• Evidence-based medicine that improves clinical outcomes and enables value-based reimbursement;

• Expanded clinical expertise and research, and personalized medicine offerings;
• Integrated, efficiency-enabling HIT to improve outcomes measurements, reporting, and product and inventory management;
• Practice-management consultation for independent specialists;
• Distribution and supply-chain expertise.

"This strategic acquisition is a logical next step in our commitment to ensure the continued vitality of community oncology, while creating value for our shareholders," said John H. Hammergren, chairman/CEO of McKesson. "The combination of US Oncology and McKesson will enhance our ability to achieve these goals in one of the most important segments in healthcare. Community oncology practices need strategic support that offers not only technology and distribution solutions, but also value-added clinical and reimbursement management services that enable them to provide the highest-quality, most efficient care to their patients. With this acquisition, McKesson will offer a compelling suite of services and solutions to community oncologists and other partners in the rapidly evolving specialty business.?

The combined McKesson Specialty Care Solutions business will be led by Bruce Broussard, Chairman/CEO of US Oncology, and will be headquartered in The Woodlands, with operations in San Francisco and throughout the country. Broussard will report to Paul Julian, executive vice president and group president, McKesson Corp. McKesson will continue to operate the United Network of US Oncology, including US Oncology’s Comprehensive Strategic Alliance, US Oncology Research, and other services under the US Oncology brand name.

"With the healthcare marketplace moving rapidly toward reimbursement based on quality and cost-effectiveness, our physician customers need access to deep clinical, operational and information technology capabilities to create integrated networks that continually enhance the quality of care in a cost-efficient manner," Broussard said. "In joining McKesson, we are building the scale and expertise necessary to empower our customer base to shape the future of healthcare."

Serving about 3,000 physician customers, the unified company is expected to accelerate investments in integrated systems that improve processes and outcomes for the delivery of more efficient care.

"The addition of US Oncology’s physician-centric business model and clinical expertise to the McKesson portfolio advances our strategy and significantly strengthens our offering for community oncology and other partners in the specialty segment," Julian said. "McKesson and US Oncology's businesses are highly complementary, providing our collective customers access to more services and solutions that will enhance their ability to deliver advanced cancer care."