Covetrus has agreed to merge with MWI Animal Health, a unit of fellow animal health technology company Cencora, in a deal that values MWI at an enterprise value of $3.5 billion, according to an announcement from the companies Wednesday.

Debevoise & Plimpton LLP and Latham & Watkins LLP are advising Portland, Maine-based Covetrus, while Freshfields LLP is representing Conshohocken, Pennsylvania-based Cencora.

Under the agreement, Cencora will receive $1.25 billion in upfront cash, $800 million in preferred equity and $1.45 billion in common equity in the combined company.

Cencora will end up with a 34.3% noncontrolling common equity stake in the combined company.

The companies said the combined business will aim to improve access to animal health products, drive operational efficiencies for veterinary practices and support innovation across the sector.

Covetrus CEO Ben Wolin said the combination will expand the company's ability to serve veterinary practices and animal health customers.

"By bringing MWI's strong distribution capabilities and expertise to our business, we can offer more solutions to more customers, improve logistics, create savings and develop innovative new ways to support the animal health ecosystem," Wolin said in a statement.

Cencora CEO Bob Mauch said the deal allows the company to focus on its core priorities while positioning MWI for future growth. He said the transaction "positions MWI for success with a partner strategically focused on and dedicated to animal health, while allowing Cencora to further invest in our key growth priorities."

The transaction is subject to customary closing conditions, including regulatory approvals.

The Freshfields team is led by M&A partners Damien Zoubek and Joshua Ayal.

The Debevoise team is led by M&A partners Spencer Gilbert and Kevin Rinker.

Information on the lead partners for Latham was not immediately available.