Cardinal Health entered into a definitive agreement with GI Alliance (GIA) and Advanced Diabetes Supply Group (ADSG) with the aim of advancing its presence in the multispecialty GI and at-home diabetes spaces.

The company will acquire a majority stake in GIA for $2.8 billion giving it 71% ownership. For its part, GIA will operate as a platform within Cardinal Health's pharmaceutical and specialty solutions division.

Cardinal Health will pay $1.1 billion for ADSG, which will merge with Cardinal's at-home solutions business.

GI Alliance's management services organization (MSO) platform includes more than 900 physicians across 345 practice locations in 20 states.

GIA is involved in gastroenterology care as well as anesthesiology, pathology, infusion, radiology and clinical research. GIA-affiliated doctors treat patients in 135 ambulatory surgical centers and 165 hospital networks that are supported by 95 infusion centers.

Advanced Diabetes Supply Group delivers diabetes supplies that are customized to support individual patients at-home. The company serves almost 500,000 patients annually by providing innovations in diabetes therapies from leading manufacturers.

"Today is an exciting day at Cardinal Health as we announce two strategic and financially compelling transactions that build upon our progress in Specialty and accelerate growth in our at-Home Solutions business," Jason Hollar, CEO of Cardinal Health, said in a statement. 

"Over the past two years, we have improved operating performance and financial flexibility by executing on our focused growth strategy. These transactions enhance Cardinal Health's ability to deliver a greater value proposition for providers and patients, while representing the next step in our ongoing focus to drive sustainable shareholder value creation," Hollar said in a statement.

THE LARGER TREND

In September, Cardinal Health entered into a definitive agreement to acquire Integrated Oncology Network (ION), a physician-led independent community oncology network, for $1.115 billion. 

ION includes more than 50 practice sites in 10 states representing more than 100 providers with extensive reach into the local communities they serve. It offers continuum of care across its member sites that includes medical oncology, radiation oncology, urology, diagnostic testing and other ancillary services.

In January, Cardinal Health entered into a definitive agreement to acquire Specialty Networks, a technology-enabled multispecialty group purchasing and practice enhancement organization for $1.2B. 

The acquisition of Specialty Networks showed Cardinal Health's prioritization of investing to accelerate growth in its Specialty business and provide leading-edge technologies, capabilities. 

It also complemented Cardinal Health's offering in key therapeutic areas by enhancing the company's downstream, provider-focused analytics capabilities and service offerings – and by advancing its upstream data and research opportunities with biopharma manufacturers.

In 2019, Medically Home Group added a $10 million strategic investment from Cardinal Health and other unnamed backers of its ongoing Series B funding round. Medically Home used the funds to scale its at-home care model for more providers and other customers.