On November 6, 2024, Cencora, Inc. (COR, Financial) announced a definitive agreement to acquire Retina Midco, Inc., known as Retina Consultants of America (RCA), a leading management services organization specializing in retina care. This strategic acquisition is valued at approximately $4.6 billion, subject to customary working capital and net-debt adjustments.
Under the terms of the agreement, Cencora will acquire RCA for cash, with RCA's affiliated practices, physicians, and management rolling over a portion of their equity. After accounting for the rollover, cash capitalization, and transaction fees, Cencora's expected cash outlay at closing is approximately $4.3 billion. The company anticipates holding an 85% ownership stake in RCA upon closing.
The agreement also includes a potential contingent consideration of up to $500 million, payable in fiscal years 2027 and 2028, contingent upon achieving specific business objectives. Cencora plans to fund the acquisition through a combination of cash on hand and new debt financing, having secured $3.3 billion in bridge financing commitments.
The transaction is subject to customary closing conditions, including regulatory approvals. This acquisition aligns with Cencora's strategy to expand its footprint in the healthcare management services sector, potentially enhancing its service offerings and market position.
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