Oracle to Acquire Cerner in $28.3 Billion Deal

Strategic Insights -

Oracle Corporation, a global technology leader, announced on December 20, 2021, that it will acquire Cerner Corporation, a leading provider of digital information systems for healthcare, in an all-cash tender offer of $95.00 per share. The acquisition is valued at approximately $28.3 billion in equity value. Oracle's mission will expand to provide medical professionals with a new generation of digital tools to secure cloud applications, aiming to reduce administrative workload, improve patient outcomes, and lower healthcare costs.

Key Takeaways:

  • The acquisition is an all-cash tender offer of $95.00 per share, valued at approximately $28.3 billion in equity value.
  • Oracle aims to reduce administrative workload burdening medical professionals, improve patient outcomes, and lower overall healthcare costs.
  • Cerner's systems will be rapidly modernized using Oracle's Autonomous Database, low-code development tools, and Voice Digital Assistant user interface.
  • The acquisition is expected 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.
  • Oracle expects to retain an investment-grade credit rating.
  • No change in Oracle's or Cerner's leadership is mentioned in the press release.
  • Oracle has a significant experience in helping power the largest industries and has adopted a growth strategy by acquiring companies like NetSuite.

Statistics:

  • The acquisition is valued at approximately $28.3 billion in equity value.
  • Oracle's revenue growth rate has already increased this year.
  • Cerner's systems are used in thousands of provider facilities worldwide.
  • The healthcare industry is valued at $3.8 trillion in the United States alone.
  • Oracle anticipates that the acquisition will be immediately accretive to its earnings on a non-GAAP basis in the first full fiscal year after closing.

Sources:

  • https://www.prnewswire.com/news-releases/oracle-to-acquire-cerner-in-28-3-billion-deal-301447516.html
  • http://www.oracle.com
  • https://www.cerner.com