Oracle buys Cerner for 25,200 million to grow in the health sector | Companies

Oracle announced on Monday the purchase of the company Cerner, specialized in the development of solutions and computer systems applied to health, for 28.3 billion dollars (25.184 million euros). The software giant, founded and chaired by Larry Elisson, will pay $ 95 in cash for each Cerner share, representing a premium of 5.8% over last Friday’s close, when the company soared 13% after that The Wall Street Journal reveal who was finalizing this operation. This Monday, Oracle fell 4.95% in the middle of the session, while Cerner only rose 0.9%.

The transaction, which is expected to close in 2022, is subject to relevant regulatory approvals and other conditions, which includes Cerner shareholders offering the majority of the company’s outstanding shares. If it materializes, it will be the largest purchase in Oracle’s history.

Cerner, based in Kansas City, was born 35 years ago and today serves 27,500 organizations in more than 35 countries. In Spain and Latin America, more than 130 hospitals use its solutions, according to this company’s website, which indicates that 30% of the Spanish population is served by a Cerner system. The company’s medical record software is used by physicians and hospitals for patient follow-up.

Following the closing of the transaction, Cerner will become an Oracle business unit and will be the company’s main asset for its expansion into the healthcare business. Cerner had a turnover of 5.5 billion dollars (4.86 billion euros) in 2020 while Oracle made 40.5 billion dollars in its last fiscal year.

“Working together, Cerner and Oracle have the ability to transform healthcare delivery by providing medical professionals with better information, enabling them to make better treatment decisions that translate into better patient outcomes,” said Ellison. President holds the position of Chief Technology Officer of Oracle.

For his part, Safra Catz, CEO of this company, added that they expect the acquisition to “lift Oracle’s earnings in the first full fiscal year after closing” and that Cerner “will be a great additional engine of revenue growth in the companies. years to come as we expand their business in many other countries. “

“Joining Oracle as a dedicated industry business unit provides an unprecedented opportunity to accelerate our work by modernizing electronic medical records, enhancing the caregiver experience, and enabling more connected, high-quality, and efficient patient care,” he noted. David Feinberg, President and CEO of Cerner.

The Cerner purchase could also attract more healthcare companies to Oracle’s cloud, according to Reuters. This agency explains that Cerner, whose software traditionally ran in its clients’ data centers, had begun to move its service to cloud computing providers and had selected Amazon Web Services as its “preferred” cloud provider in 2019. .

However, Oracle has explained today that it will move Cerner’s software to its own cloud computing service and that it will modernize the acquired company’s applications with tools such as a voice assistant. “This can be done very quickly because Cerner’s most important clinical system already runs on Oracle Database,” said Mike Sicilia, executive vice president of Vertical Industries at Oracle.

Tech giants’ interest in healthcare has exploded as demand for cloud-based solutions has increased with the pandemic. Last April, Microsoft bought Nuance for $ 16 billion to drive its healthcare cloud strategy. And, as Computer World recalls, another giant of the cloud such as Amazon Web Services (AWS) has large contracts in the healthcare field with healthcare companies such as GE Healthcare and Olive.


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