McKesson is expanding its footprint in the oncology field with a combined $1.2 billion acquisition of two companies – Vantage Oncology and Biologics.

Vantage Oncology provides radiation oncology, medical oncology and integrated cancer care across the country. Biologics is an oncology pharmacy services company.

McKesson, which expects to close the deal in the first quarter of 2017, will fund the purchase with a mix of cash and debt. Both Vantage and Biologics will become part of McKesson's Specialty Health business.

[Also: McKesson completes acquisition of US Oncology]

Collectively, these acquisitions will increase McKesson's specialty pharmaceutical distribution scale, oncology-focused pharmacy offerings, solutions for manufacturers and payers, and scope of community-based oncology and practice management services for providers and patients, McKesson executives say.

"We believe the acquisitions of Vantage and Biologics complement our holistic approach to providing best-in-class care for oncology patients," said McKesson Chairman and CEO John Hammergren in a news release.

[Also: McKesson boosts cancer portfolio with $2.16B acquisition]

As Hammergren sees it, Vantage will broaden the McKesson's scale in radiation oncology management services, adding more than 50 cancer centers across 13 states. Vantage will complement and strengthen McKesson's existing offerings. As for Biologics, he expects the acquisition will extend McKesson's oncology expertise across the continuum of care.