By utilising Oracle’s infrastructure, resources, and cloud capabilities, the Missouri-based Cerner is expected to expedite product and technology development to make healthcare more connected, high-quality, and efficient
Oracle has signed an agreement to acquire Cerner, a US-based publicly listed health information and electronic health record (EHR) technology provider, in a deal that values the latter at around $28.3bn.
As per the terms of the deal, the tech major is offering a price of $95 per share in cash to Cerner’s shareholders.
Headquartered in Kansas City, Missouri, Cerner is engaged in providing digital information systems for hospitals and health systems using which medical professionals can give better healthcare to patients and communities.
Apart from modernising electronic health records, the health IT firm is focused on enhancing the caregiver experience as well as optimising and automating administrative and clinical workflows.
Cerner’s 2020 revenue was $5.5bn and its full-year 2021 revenue has been forecast to be between $5.75bn and $5.95bn.
Oracle plans to organise Cerner as a dedicated industry business unit within its group. The tech major said that the latter will be its anchor asset to expand into the healthcare sector.
Oracle CEO Safra Catz said: “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.”
Oracle stated that its combination with Cerner gives it the capacity to address the issues in the healthcare sector related to EHR related activities.
By leveraging Oracle’s infrastructure, resources, and cloud capabilities, the health technology provider is expected to expedite product and technology development to make healthcare more connected, high-quality, and efficient.
Cerner president and CEO David Feinberg said: “Cerner has been a leader in helping digitise medical care and now it’s time to realise the real promise of that work with the care delivery tools that get information to the right caregivers at the right time.
“Joining Oracle as a dedicated Industry Business Unit provides an unprecedented opportunity to accelerate our work modernising EHR improving the caregiver experience, and enabling more connected, high-quality and efficient patient care.”
Furthermore, Cerner’s systems running on the Oracle Gen2 Cloud will be available round the clock, said Oracle.
The deal, which is subject to certain regulatory approvals, Cerner’s stockholders’ approval, and other conditions, is anticipated to close in 2022.