Oracle Buys Cerner For $28B
December 20, 2021
Oracle and Cerner singed an agreement for Oracle to acquire Cerner
through an all-cash tender offer for $95.00 per share, or approximately
$28.3 billion in equity value. Cerner is a leading provider of digital
information systems used within hospitals and health systems to enable
medical professionals to deliver better healthcare to individual
patients and communities.
“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,” said Larry Ellison, Chairman and Chief
Technology Officer, Oracle. “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.”
“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,” said Safra Catz, Chief Executive Officer,
Oracle. “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.”
“Cerner has been a leader in helping digitize medical care and now it’s
time to realize the real promise of that work with the care delivery
tools that get information to the right caregivers at the right time,”
said David Feinberg, President and Chief Executive Officer, Cerner.
“Joining Oracle as a dedicated Industry Business Unit provides an
unprecedented opportunity to accelerate our work modernizing electronic
health records (EHR), improving the caregiver experience, and enabling
more connected, high-quality and efficient patient care. We are also
very excited that Oracle is committed to maintaining and growing our
community presence, including in the Kansas City area.”
“Oracle’s Autonomous Database, low-code development tools, and Voice
Digital Assistant user interface enables us to rapidly modernize
Cerner’s systems and move them to our Gen2 Cloud,” said Mike Sicilia,
Executive Vice Precedent, Vertical Industries, Oracle. “This can be done
very quickly because Cerner’s largest business and most important
clinical system already runs on the Oracle Database. No change required
there. What will change is the user interface. We will make Cerner’s
systems much easier to learn and use by making Oracle’s hands-free Voice
Digital Assistant the primary interface to Cerner’s clinical systems.
This will allow medical professionals to spend less time typing on
computer keyboards and more time caring for patients.”
All-cash tender offer for $95.00 per share, or approximately
$28.3 billion, that is immediately accretive to Oracle’s
Accretive to Oracle’s earnings on a non-GAAP basis in
the first full fiscal year after closing and will
contribute substantially more to earnings in the second
fiscal year and thereafter.
Cerner will be a huge
additional revenue growth
engine for Oracle for years to come as Oracle expands
Cerner’s business into many more countries throughout
is expected to close in calendar
year 2022. The closing of the transaction is subject to
receiving certain regulatory approvals and satisfying
other closing conditions including Cerner stockholders
tendering a majority of Cerner’s outstanding shares in
the tender offer.
anticipates retaining an investment grade credit rating.
brings significant experience helping power the largest
provides industry solutions that run the core operations
for customers in the world’s largest industries.
Industries covered by Oracle today include, among
others, Financial Services, Telecom, Utilities,
Pharmaceuticals, Hospitality, Retail, Food & Beverage,
Construction & Engineering, Manufacturing and
also brings best in class cloud infrastructure to drive
digital modernization, substantially lowering the total
cost of IT in these critical industry sectors.
- Cerner is a
leader in the healthcare IT industry and a complementary
business to Oracle.
is a leading provider of digital information systems
used within hospitals to enable medical professionals to
deliver better healthcare to individual patients and
has over four decades of experience modernizing
electronic health records, improving the caregiver
experience, and streamlining and automating clinical and
Oracle and Cerner will protect customer investments and
to a recent study by the Mayo Clinic1,
physicians spend 1 to 2 hours on EHRs and desk work for
every hour spent in face-to-face contact with patients,
as well as an additional 1 to 2 hours of personal time
on EHR related activities.
together, Cerner and Oracle have the capacity to address
these issues and transform healthcare delivery by
providing medical professionals with better
information—enabling them to make better treatment
decisions resulting in better patient outcomes.
investments in Cerner are also protected with this
combination and will grow in value over time as more
modern and connected technologies are made available.
Oracle’s resources, infrastructure and cloud
capabilities, Cerner will accelerate the pace of product
and technology development to enable more connected,
high-quality, and efficient care.
focus on usability and voice enabled user interfaces
will dramatically reduce the amount of time that
medical providers spend dealing with systems and
increase the time they spend directly caring for
Significant opportunity to help customers use Oracle’s
modern technologies such as cloud, AI, ML and other
innovations to make care more accessible, secure,
efficient and effective for patients and caregivers.
Cerner systems running on the Oracle Gen2 Cloud will
be available 24 by 7 by 365. Goal is to deliver zero
unplanned downtime in the medical environment.
Cerner systems running on the Oracle database, only
specifically authorized medical professionals can
access patient data. IT professionals running the
systems are unable to look at patient data.
and Cerner are committed to continued and enhanced
stewardship of health information, which will be
bolstered by Oracle’s global operational infrastructure.
- Cerner will
be organized as a dedicated Industry Business Unit within
will be Oracle’s anchor asset to expand into healthcare
and together we will improve medical care for
individuals and communities around the world.
intends to maintain and grow Cerner’s community
presence, including in the Kansas City area, while
utilizing Oracle’s global footprint to reach new