Cencora has agreed to acquire Retina Consultants of America (RCA), a management services organisation (MSO) of retina physician practices in the US, for $4.6bn.
The US-based healthcare solutions provider will acquire RCA from Webster Equity Partners, a private equity firm based in Waltham, Massachusetts.
RCA’s affiliated practices, physicians and management will retain a minority interest in RCA, with Cencora holding approximately 85% ownership in RCA upon closing.
In addition, Cencora will potentially pay up to $500m in aggregate contingent consideration in fiscal year 2027 and fiscal year 2028, subject to achieving certain predefined objectives.
The closing of the transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals.
Cencora intends to finance the acquisition using a combination of available cash and new debt financing.
The healthcare solutions provider said the acquisition will help widen its relationships with community providers in a high-growth segment and build on its leadership in speciality.
Cencora president and CEO Bob Mauch said: “With a compelling value proposition for physicians, an impressive leadership team and strong clinical research capabilities, RCA is well-positioned at the forefront of retinal care.
“We intend to use our leading operational infrastructure to help RCA enhance the provider experience, drive innovative new research and create better outcomes for patients.
“Following our recent investment in OneOncology, the addition of RCA will allow us to expand our MSO solutions and drive differentiated value across the healthcare system for manufacturers, providers and patients.”
Cencora said the acquisition will strengthen its presence in the community provider space with a network of nearly 300 retina specialists across 23 states.
The deal will expand Cencora’s speciality services and MSO business, enhancing relationships with physicians and manufacturers while supporting practice autonomy and patient care.
Also, RCA’s clinical research network of 40 trial sites and 400 research staff, will strengthen its role as a key partner for pharmaceutical innovators, said Cencora.
Lazard served as the exclusive financial advisor, Freshfields, Sidley Austin, and Morgan, Lewis & Bockius as legal counsel to Cencora on the transaction.
Also, Goldman Sachs & Co., Rothschild & Co., Goodwin Procter, and ReedSmith served as advisors to RCA.
RCA CEO Robby Grabow said: “We are pleased to enter our next phase of growth with the support of a leading global pharmaceutical solutions organisation.
“With additional resources to support the continued execution of our growth strategy, we will be better positioned to continue expanding our physician network and enhancing the quality of care we provide.”
Cencora EVP and chief financial officer Jim Cleary said: “Cencora is committed to maintaining its strong investment grade credit rating and will prioritise de-leveraging in the years following transaction close.”
