Oracle Corporation and Cerner Corporation jointly announced that Oracle will acquire Cerner with a stock value of approximately $28.3 billion ($95 per share). Cerner is an American digital information systems providerwhich are used in hospitals and health care. Oracle is an American software and hardware company.
“Cerner and Oracle’s collaboration allows us to provide healthcare professionals with better information to transform healthcare delivery – enabling them to make better treatment decisions and therefore better patient outcomes,” said Larry Ellison, Oracle Chairman and Chief Technology Officer. The company is expanding its profile through acquisitions and providing fatigued medical professionals with a new generation of easy-to-use digital tools. The company said the new generation of medical information systems promise to reduce the administrative burden on professionals, improve data protection and patient outcomes, and reduce the overall cost of healthcare.
“We expect this acquisition to result in increased immediate earnings for Oracle in its first full fiscal year and a significantly higher contribution to earnings in its second fiscal year and beyond,” said Safra Katz, CEO of Oracle. Healthcare is one of the largest and most important markets in the world – $3.8 trillion last year in the US alone. Oracle’s revenue growth rate is already up in 2021 – Cerner will provide additional revenue growth in the coming years as it plans to expand its business to many countries around the world.
The transaction is expected to close in calendar year 2022.
Oracle / kma online