Cardinal Health to buy Specialty Networks for $1.2 billion in cash to boost analytics capabilities

Cardinal Health Inc.
CAH,
+0.73%
announced Wednesday an agreement to buy Specialty Networks for $1.2 billion in cash. Cardinal said the acquisition expands its offering in therapeutic areas by boosting its analytics capabilities and service offerings, and increases its data and research opportunities with biopharmaceutical manufacturers. Specialty Networks’ PPS Analytics analyzes data, from sources including electronic medical records, imaging and dispensing systems and uses artificial intelligence to provide insights for providers, researchers, payers and policymakers. “Combining [Specialty Networks’] unique service offerings and advanced technology solutions like PPS Analytics with our distribution partnerships and operations will enhance our value proposition for our specialty GPO [group purchasing organization] members across therapeutic areas,” said Debbie Weitzman, chief executive of Cardinal Health Pharmaceutical and Specialty Solutions. Cardinal’s stock, which was indicated up nearly 1% in the premarket, has rallied 17.7% over the past three months while the Health Care Select Sector SPDR ETF
XLV,
+0.23%
has climbed 12.9% and the S&P 500
SPX,
-0.06%
has advanced 17.4%.