Healthcare giant McKesson and a private-equity firm are nearing a deal to acquire Option Care Health, a provider of home and outpatient infusion therapy, the Financial Times reported Monday. Investors embraced the potential takeover.

Shares of Option Care rose 22% in after-hours trading after ending Monday's session up 3.2% to $23.37. If the shift holds, the stock would erase much of from its 27% decline this year, which tracked its worst annual performance since 2024, according to Dow Jones Market Data.

McKesson stock was flat after rising 1.3% on the day.

McKesson and Clayton Dubilier & Rice are in advanced talks to buy Option Care in a deal that would value the company at more than $5 billion, including debt, FT reported, citing people familiar with the matter.

Option Care, CD&R, and McKesson did not immediately respond to requests for comment from Barron's.

CD&R would take a 51% controlling stake in Option Care, and McKesson would hold the remaining 49%, according to the FT. A deal is expected to include a provision allowing McKesson the right to purchase CD&R's stake in the future.

An agreement could be reached as soon as Tuesday, though negotiations are ongoing.