McKesson Corp., a health IT powerhouse and the nation's biggest drug distributor, said Monday it would buy closely held oncology-services company U.S. Oncology for a cash deal valued at $2.16 billion.

The deal, with a targeted closing date of Dec. 31, includes the assumption of Woodlands, Texas-based U.S. Oncology's outstanding debt.

By scooping up U.S. Oncology from its owners, New York private equity firm Welsh Carson Anderson & Stowe, McKesson hopes to expand its cancer range. The company currently works with 1,000 oncologists, providing service to 17 percent of all U.S. cancer patients, according to BusinessWeek. The combined company will include 3,000 oncologists, the paper said.

San Francisco-based McKesson rose 2.36 percent in morning trading to reach $67.54 per share, a three-month high.

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