Texas-based software giant oracle takes its biggest move toward the health sector with a deal to buy Cerner for $28.3 billion. US-based Cerner is a large electronic health records vendor, which is set to be paid in an all-cash deal for $95 per share. According to CNBC, The deal, expected to close in the calendar year 2022, could help Oracle boost its presence in health care by bringing troves of health data to its cloud services.
The Wall Street Journal reported a few days ago about this deal between Oracle and Cerner. Oracle expects to secure a huge additional revenue growth engine by the acquisition with Cerner. This tech giant plans to expand Cerner’s business into many more countries throughout the world. With this deal, database giant Oracle not just put its footprint in the growing healthcare market also highlighted the sector in front of other companies. Oracle is founded in 1977 and had a market cap of around $264 billion as of 20 December 2021.
In 2020 Cerner generated $5.51 billion in revenue, and .its sales are projected to rise by 5% to $5.8 billion in 2021. According to The New York Times, Cerner is No. 2 in the electronic health record business, with 25 percent of the market in 2020, according to KLAS Research, which tracks the health care industry. Cerner was slipping slightly and Epic, which had 31 percent of the market, was gaining, the research group reported this year.
In a press release of Oracle, Larry Ellison, Chairman, and Chief Technology Officer, Oracle said that ‘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-free voice 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.
In a statement, Dr. Feinberg, chief executive of Cerner said, ‘combining with Oracle would give Cerner “an unprecedented opportunity to accelerate our work modernizing electronic health records,” improving the experience for physicians and nurses, and care for patients.