TPG will acquire a majority interest in the community oncology practice management platform, while AmerisourceBergen will buy a minority stake for around $685m
AmerisourceBergen and TPG have agreed to acquire OneOncology from General Atlantic. (Credit: Adam Radosavljevic from Pixabay)
Drug distributor AmerisourceBergen and asset management firm TPG have agreed to acquire OneOncology, a network of oncology practices, from General Atlantic in a deal worth $2.1bn.
OneOncology has more than 900 affiliated providers across 14 states in the US.
Under the terms of the deal, TPG, AmerisourceBergen, and OneOncology’s associated physicians, practices, and management team will create a new joint venture (JV). The JV’s goal will be to acquire OneOncology from its current shareholders, including existing majority owner General Atlantic.
General Atlantic MD Justin Sunshine said: “Our 2018 investment in OneOncology helped launch a shared vision to improve the future of cancer care amidst prevailing cost, quality and access issues.
“We are proud that this mission-driven approach has resulted in a leading oncology platform that empowers high-quality and innovative cancer care in the community setting.”
TPG will acquire a majority interest in the community oncology practice management platform, and AmerisourceBergen will buy a minority stake in the JV for around $685m in cash. This will give a stake of around 35% to AmerisourceBergen in the JV.
OneOncology’s associated physicians, practices and management team will retain a minority interest in the network.
Additionally, TPG will present an option in the future under which it may require AmerisourceBergen to buy all the other interests in the JV, including its own stake.
OneOncology CEO Jeff Patton said: “OneOncology has been focused on strengthening independent oncology practices by helping them grow and deliver high-value cancer services, and General Atlantic’s involvement and investment have been central to our success.
“As we look ahead, we are excited to continue building the platform in partnership with TPG, a proven investor in the healthcare provider space, and AmerisourceBergen, a healthcare leader with significant capabilities and solutions for community oncology practices.”
The proposed acquisition is expected to bolster the relationship of AmerisourceBergen with a network of community oncology practices.
OneOncology’s practice management services will also complement AmerisourceBergen’s existing capabilities in inventory management, practice analytics, and clinical trial support.
The American drug distributor said that the transaction is anticipated to boost its oncology platform.
The deal, which is subject to regulatory approvals and other conditions, is expected to complete by the end of September 2023.