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Cencora (NYSE: COR) will acquire Retina Consultants of America (RCA) from Webster Equity Partners for $4.6 billion.

Why it matters: Exits for large-scale, PE-backed physician platforms have been stuck in the mud to this point.

Zoom in: RCA's affiliated practices, physicians and management retain a minority stake in the eye care platform, with Cencora holding about 85% of the business on closing.

Cencora will potentially pay up to $500 million in aggregate contingent consideration in fiscal 2027 and 2028.

The acquisition beefs up Cencora's specialty drug presence. In addition to running retinal care practices, RCA operates a clinical research network with 40 trial sites.

Behind the scenes: RCA was marketing off between $200 million and $300 million in EBITDA, a source tells Axios.

The business was generating about $300 million-plus in 2021 TTM EBITDA, Axios reported in 2022. Webster did not respond to a request for comment.

Catch up quick: Webster's been prepping this asset for a while, initiating fireside chats back in late 2022.

Cencora has proved a reliable strategic acquirer of PE-backed assets after teaming up with TPG to acquire OneOncology last year for $2.1 billion.

What they're saying: "Following our recent investment in OneOncology, the addition of RCA will allow us to expand our MSO solutions and drive differentiated value across the health care system for manufacturers, providers and patients," Cencora CEO Bob Mauch said in a statement.

Cencora to pay $4.6B for Retina Consultants of America

Exits for large-scale, PE-backed physician platforms have been stuck in the mud to this point.

Illustration of the eyes emoji with pennies instead of pupils.

Health tech deals

Cencora (NYSE: COR) will acquire <a class="gtmContentClick" data-vars-link-text="Retina Consultants of America" data-vars-click-url="https://www.axios.com/pro/health-tech-deals/2022/09/21/webster-retina-consultants-of-america-rca-sale" data-vars-content-id="634fab11-ee24-4ba5-8252-632ae8870406" data-vars-headline="Cencora to pay $4.6B for Retina Consultants of America" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/health-tech-deals/2022/09/21/webster-retina-consultants-of-america-rca-sale" target="_self">Retina Consultants of America</a> (RCA) from Webster Equity Partners <a class="gtmContentClick" data-vars-link-text="for $4.6 billion" data-vars-click-url="https://www.businesswire.com/news/home/20241105587321/en/Cencora-Advances-Specialty-Leadership-Through-Acquisition-of-Retina-Consultants-of-America" data-vars-content-id="634fab11-ee24-4ba5-8252-632ae8870406" data-vars-headline="Cencora to pay $4.6B for Retina Consultants of America" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.businesswire.com/news/home/20241105587321/en/Cencora-Advances-Specialty-Leadership-Through-Acquisition-of-Retina-Consultants-of-America" target="_blank">for $4.6 billion</a>.Why it matters: Exits for large-scale, PE-backed physician platforms have been <a class="gtmContentClick" data-vars-link-text="stuck in the mud" data-vars-click-url="https://www.axios.com/pro/health-tech-deals/2024/07/11/private-equity-backlog-physician-practice-investments" data-vars-content-id="634fab11-ee24-4ba5-8252-632ae8870406" data-vars-headline="Cencora to pay $4.6B for Retina Consultants of America" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/health-tech-deals/2024/07/11/private-equity-backlog-physician-practice-investments" target="_self">stuck in the mud</a> to this point.

Cencora to pay $4.6B for Retina Consultants of America

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