Software giant Oracle announced that it has agreed to buy Cerner, a leading health information technology provider for $28.3 billion. Founded in 1977, this is Oracle’s largest acquisition to date as it intends to boost its revenue and expand into healthcare industry with this acquisition. The deal sees Oracle acquiring Cerner through an all-cash tender offer for $95.00 per share, or approximately $28.3 billion in equity value.
According to Chairman and Chief Technology Officer of Oracle, Larry Ellison in a press release, “Working together, Cerner and Oracle have the capacity to transform healthcare delivery by providing medical professionals with better information—enabling them to make better treatment decisions resulting in better patient outcomes.”
“With this acquisition, Oracle’s corporate mission expands to assume the responsibility to provide our overworked medical professionals with a new generation of easier-to-use digital tools that enable access to information via a hands-free voice interface to secure cloud applications. This new generation of medical information systems promises to lower the administrative workload burdening our medical professionals, improve patient privacy and outcomes, and lower overall healthcare costs,” he added.
Oracle currently provides industry solutions that run the core operations for customers in the world’s largest industries including Financial Services, Telecom, Utilities, Pharmaceuticals, Hospitality, Retail, Food & Beverage, Construction & Engineering, Manufacturing and Government.
With over forty years of experience in modernizing electronic health records, improving the caregiver experience, and streamlining and automating clinical and administrative workflows, Cerner is a leading provider of digital information systems used within hospitals to enable medical professionals to deliver better healthcare to individual patients and communities.
Oracle CEO, Safra Catz stated that with Healthcare being the largest and most important vertical market in the world—$3.8 trillion last year in the United States alone, Cerner will be a huge additional revenue growth engine for years for Oracle to come as it expands its business into many more countries throughout the world.
Cerner will be organized as a dedicated Industry Business Unit within Oracle and it will be Oracle’s anchor asset to expand into healthcare.
“Cerner has been a leader in helping digitize medical care and now it’s time to realize the real promise of that work with the care delivery tools that get information to the right caregivers at the right time,” said David Feinberg, President and Chief Executive Officer, Cerner. “Joining Oracle as a dedicated Industry Business Unit provides an unprecedented opportunity to accelerate our work modernizing electronic health records (EHR), improving the caregiver experience, and enabling more connected, high-quality and efficient patient care. We are also very excited that Oracle is committed to maintaining and growing our community presence, including in the Kansas City area.”
Transaction is expected to close in calendar year 2022.
