US-based software company Oracle has agreed to acquire Cerner, a provider of health information technology services, devices, and hardware, in a deal worth around $28.3bn.
Under the deal, Oracle will purchase the complete stock of Cerner by paying $95.00 per share.
Based in North Kansas City of Missouri, Cerner offers digital information systems for hospitals and health systems to help medical professionals deliver enhanced healthcare to individual patients and communities.
The company’s offerings consist of analytics, population health management, clinical solutions, open and interoperable solutions, revenue cycle management, services and technology, and real-world data solutions.
With over four decades of experience in modernising electronic health records, Cerner works to streamline and automate clinical and administrative workflows.
Cerner and Oracle will work together to deliver enhanced information to medical professionals, thereby helping to take better treatment decisions for improved patient outcomes.
The deal is expected to allow Cerner to boost the pace of product and technology development with Oracle’s resources, infrastructure and cloud capabilities to facilitate connected, quality and efficient care.
Also, as Cerner systems will run on the Oracle database, only specifically authorised medical professionals will have access to patient data, the company said.
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.”
Apart from growing Cerner’s community presence, including in the Kansas City area, Oracle is anticipated to expand Cerner’s business into other countries, utilising its global footprint.
Subject to receiving certain regulatory approvals and satisfying other closing conditions, the deal is expected to be completed in calendar year 2022.
