McKesson Reportedly Considers Separation Of Information-Technology Unit

(RTTNews) - McKesson Corp. (MCK) is weighing a separation of its information-technology unit as the company grapples with pricing pressure in its core drug-distribution business, the Wall Street Journal reported citing people familiar with the matter.

The report indicated that McKesson, which has a market capitalization of more than $40 billion, is considering options for the business that could include a sale or a merger. It is not clear whether any deal would be for the entire business and there may not be one at all.

The business, known as Technology Solutions, provides software, services and consulting to hospitals, doctors' offices and others, and helps customers reduce costs and errors.

Based on typical industry multiples, the technology business could be worth more than $5 billion including any debt, the report said.