Oracle Inks Deal to Buy Electronic Medical Records Company Cerner for $28 Billion

Oracle and Cerner have jointly announced an agreement for Oracle to acquire Cerner through an all-cash bid for $95 per share, or approximately $28.3 billion in stock value. The deal is expected to close in 2022.

Cerner is a provider of digital information systems used within hospitals to enable medical professionals to deliver better healthcare to individual patients and communities. She has more than 4 decades of experience updating electronic health records, improving caregiver experience, and simplifying and automating clinical and administrative workflows.

“Working together, Cerner and Oracle have the potential to transform healthcare delivery by providing medical professionals with better information—and empowering them to make better treatment decisions that lead to better patient outcomes,” said Larry Ellison, Oracle Chairman and Chief Technology Officer. “With this acquisition, Oracle’s mission to take responsibility expands to provide our medical professionals with a new generation of easy-to-use digital tools that enable information access via a hands-free voice interface to secure cloud applications. This new generation of medical information systems promises to reduce administrative workload which overburdens our medical professionals, improves patient privacy and outcomes, and lowers overall healthcare costs.”

“We expect this acquisition to immediately accrue to Oracle’s GAAP earnings in the first full fiscal year after closing – and to contribute significantly to earnings in fiscal year two and beyond,” added Safra Katz, CEO. inspiration. “Healthcare is the world’s largest and most important vertical market – $3.8 trillion last year in the US alone. Oracle’s revenue growth rate has already increased this year – Cerner will be a huge additional driver of revenue growth for years to come as we expand its business in many countries around the world.” This is exactly the growth strategy we adopted when we bought NetSuite – except that Cerner’s revenue opportunity is greater.”

“Cerner has been a pioneer in helping to digitize medical care and now is the time to realize the true promise of this business with care delivery tools that move information to the right providers at the right time,” said David Feinberg, President and CEO. “Joining Oracle as a dedicated industry business unit provides an unprecedented opportunity to accelerate our work in electronic health records (EHR) modernization, improve the provider experience, and enable 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.

Closing the transaction in 2022 is subject to receiving certain regulatory approvals and meeting other closing conditions including Cerner stockholders offering the majority of Cerner’s shares outstanding in a tender offer.

The companies said that Cerner systems running on Oracle Gen2 Cloud will be available 24 hours a day, 7 days a week, with the goal of no unplanned downtime in the medical environment.

Cerner will be organized as a dedicated industry business unit within Oracle.

Oracle also said that Cerner will be its primary asset for expanding healthcare and together they will improve medical care for individuals and communities around the world. Oracle intends to maintain and grow the presence of the Cerner community, including the Kansas City area, while leveraging Oracle’s global footprint to reach new geographies faster.

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