Oracle Corporation, an enterprise software giant, has announced the acquisition of Cerner through an all-cash offer for $95.00 per share, approximately $28.3 billion in equity value.
The duo made the joint announcement today, with the transaction expected to close in 2022. In the press announcement, Oracle said the deal will provide “a huge revenue growth engine for years to come” as Oracle expands Cerner into more countries.
Larry Ellison, Chairman and Chief Technology Officer, Oracle, said: “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.
“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-freevoice 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.”
Safra Catz, Chief Executive Officer, Oracle, added: “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.
“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.”
