Software titan Oracle has announced that it will purchase electronic medical records company Cerner in an all-cash deal for $95 per share or $28.3 billion in equity value approximately.
The deal which is to go through regulatory approval is expected to close in 2022 and would help software company Oracle boost its presence in the healthcare sector as it will be bringing health data to its cloud services.
Oracle, known by its corporate name Oracle Corporation, is an American multinational computer technology corporation. It currently has its headquarters in Austin, Texas. Prior to now, it was headquartered in Redwood Shores, California. As of 2020, the company was the second-largest software company globally on the basis of revenue and market capitalization. Oracle is known for selling database software and technology, cloud engineered systems and enterprise software products such as enterprise resource planning (ERP) software, human capital management (HCM) software, customer relationship management (CRM) software, etc.
After the announcement which came on Monday, shares of Oracle closed down 5 percent. Shares initially fell by 6 percent on Friday after the deal was reported the deal.
On the other hand, Cerner is an American supplier of health information technology services, devices, and hardware. According to Wikipedia, as of February 2018, its products were in use at more than 27,000 facilities around the world. The company has its headquarters in Kansas City, Missouri. Cerner has more than 29,000 employees globally and 13,000 out of this number work in its headquarters.
Acquiring Cerner will be Oracle’s biggest acquisition ever and one of the largest by a software provider. Oracle said the acquisition will be immediately accretive to the company’s earnings on a non-GAAP basis in the first full fiscal year after closing. It expects Cerner to be “a huge additional revenue growth engine for years to come”.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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