Cardinal Health began an agreement to acquire two companies: a majority stake in GI Alliance (GIA), and Advanced Diabetes Supply Group (ADSG).

The company said it will purchase the majority stake in GIA for about $2.8 billion in cash representing 71% ownership. ADSG will be acquired for about $1.1 billion in cash.

“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,” said Jason Hollar, CEO, Cardinal Health. “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.”

GI Alliance

GIA is a leading gastroenterology (GI) management services organization (MSO). Its MSO platform has over 900 physicians across 345 locations in 20 states.

GI Alliance operates a multi-specialty platform that will further expand both nationally and in other key therapeutic areas, while building on the technology and specialty practice capabilities acquired by Cardinal Health in its previously announced acquisitions of Specialty Networks (urology, GI, rheumatology) and Integrated Oncology Network (medical oncology, radiation oncology, urology).

“Cardinal Health and GI Alliance are aligned in our shared vision to build a physician-led, national specialty healthcare platform that will be the preferred choice for all patients seeking dependable, high-quality care,” said James Weber, M.D., CEO, GI Alliance. “This partnership brings together two like-minded organizations focused on delivering exceptional care and enhanced clinical and operational support for physicians that drives increased value.”

Advanced Diabetes Supply Group

ADSG is a leading diabetic medical supplies provider. It will merge with Cardinal’s at-Home Solutions business.

The company delivers comprehensive diabetes solutions tailored to support individual patients at home. It serves about 500,000 patients annually, providing the latest diabetes therapy innovations from leading manufacturers.

“We couldn’t be more excited about joining Cardinal Health at-Home Solutions to build on our mission of being a trusted partner in this critical space of the healthcare industry,” said Bill Mixon, CEO, Advanced Diabetes Supply Group. “It’s clear that we both share the same passion of making sure the patients we serve have the best possible outcomes. Together, we can bring more simplicity, speed and quality to patients living with diabetes and the providers who care for them.”