03:07 PM EDT, 09/23/2024 (MT Newswires) -- Cardinal Health's ( CAH ) planned $1.15 billion purchase of Integrated Oncology Network should amplify the company's reach in the high-growth, higher-margin oncology space, UBS said in a note Monday.

Cardinal Health ( CAH ) on Friday announced the acquisition of Integrated Oncology Network, a physician-led independent community oncology network, that has more than 50 practice sites in 10 states. The company said it expected the acquisition to expand its suite of clinical and practice management solutions.

Cardinal Health ( CAH ) expects the deal to be accretive to non-GAAP earnings after 12 months following close. According to UBS, the deal would need to generate at least $55 million to $60 million to "satisfy the accretion hurdle," assuming it closes by the last day of 2024.

The firm maintained a buy rating on Cardinal Health ( CAH ) with a price target of $125.

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