Cencora agrees to buy Fort Myers-based American Oncology Network at a 2.4 billion dollar enterprise value

Cencora, the Conshohocken, Pennsylvania drug distributor, has signed a definitive agreement to acquire Fort Myers-based American Oncology Network, according to a press release Cencora filed with the Securities and Exchange Commission on October 21. AON is a physician-led network of more than 350 oncology providers practicing in 21 states, and its SEC filings give its business address as 14543 Global Parkway in Fort Myers.

What Cencora is paying for American Oncology Network

The release values AON at an enterprise value of 2.4 billion dollars. That is 2.3 billion dollars at closing plus contingent value rights worth up to 100 million dollars, which Cencora would pay only if certain conditions are met.

Cencora already holds about 4 percent of AON's equity and has agreed to buy the rest. Some AON stockholders may keep up to 25 percent of the company through an equity rollover. If they keep the full 25 percent, Cencora expects to pay about 1.7 billion dollars to bring its stake to 75 percent. AON's shares trade over the counter under the symbol AONC.

What happens before the deal closes

The sale is not done. It needs regulatory clearances and the approval of AON's stockholders, along with other customary conditions. AON's board approved the agreement on the unanimous recommendation of a special committee of independent directors.

Cencora said in the release that it expects the purchase to add to its adjusted earnings per share in the second year after closing.

What it means for AON patients and Fort Myers

The release says clinical decisions will continue to rest with AON's physicians. AON chief executive Todd Schonherz said in the release that Cencora has been an investor in the company since 2020. The release does not address AON's Fort Myers headquarters or its staff here.

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