- August 08, 2022
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e-Health: Oracle makes largest buyout in its history, spending $28 billion for Cerner
Oracle Corporation and Cerner Corporation jointly announced an agreement for Oracle to acquire Cerner through an all-cash tender offer for $95.00 per share, or approximately $28.3 billion in equity value. Cerner is a leading provider of digital information systems used within hospitals and health systems to enable medical professionals to deliver better healthcare to individual patients and communities.
“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,” said Larry Ellison, Chairman and Chief Technology
Officer, Oracle. “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.”
“We expect this acquisition to be immediately accretive to
Oracle’s earnings on a non-GAAP basis in the first full fiscal year after
closing—and contribute substantially more to earnings in the second fiscal year
and thereafter,” said Safra Catz, Chief Executive Officer, Oracle.
“Healthcare is the largest and most important vertical market in the world—$3.8
trillion last year in the United States alone. Oracle’s revenue growth rate has
already been increasing this year—Cerner will be a huge additional revenue
growth engine for years to come as we expand its business into many more
countries throughout the world. That’s exactly the growth strategy we adopted
when we bought NetSuite—except the Cerner revenue opportunity is even larger.”
“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.”
“Oracle’s Autonomous Database, low-code development tools,
and Voice Digital Assistant user interface enables us to rapidly modernize
Cerner’s systems and move them to our Gen2 Cloud,” said Mike Sicilia,
Executive Vice President, Vertical Industries, Oracle. “This can be done
very quickly because Cerner’s largest business and most important clinical
system already runs on the Oracle Database. No change required there. What will
change is the user interface. We will make Cerner’s systems much easier to
learn and use by making Oracle’s hands-free Voice Digital Assistant the primary
interface to Cerner’s clinical systems. This will allow medical professionals
to spend less time typing on computer keyboards and more time caring for
patients.”
Source: Oracle