Oracle Buys Cerner

“Oracle Corporation (NYSE: ORCL) and Cerner Corporation today jointly announced 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 President, 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.” 

“Highlights 

  • All-cash tender offer for $95.00 per share, or approximately $28.3 billion, that is immediately accretive to Oracle’s earnings. 
  • 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 the world. 
  • Transaction 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. 
  • Oracle anticipates retaining an investment grade credit rating… 
  • Oracle 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. 
  • Cerner is a leading provider of digital information systems used within hospitals to enable medical professionals to deliver better healthcare to individual patients and communities. 
  • Cerner has over four decades of experience modernizing electronic health records, improving the caregiver experience, and streamlining and automating clinical and administrative workflows. 
  • Together, Oracle and Cerner will protect customer investments and transform healthcare. 
  • According 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. 
  • Working 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. 
  • Customer 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. 
  • With 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. 
  • Oracle’s 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 patients…” Read more here.

Source: Oracle Buys Cerner, December 20, 2021. Oracle. 

G2X TAKE: This Cloud Technology company has announced an all-cash tender offer for $95.00 per share, or approximately $28.3 billion in equity value which will allow this leading provider of digital information systems to accelerate the pace of product and technology development to enable more connected, high-quality, and efficient care through access to joint resources, infrastructure and cloud capabilities. 

Take Bytes 

Of course, this was big news yesterday across the Federal health space. Here are some highlights of other coverage: 

“Officials noted that the acquisition should support continuous development and modernization of the EHR through Oracle’s cloud. Additionally, with Cerner systems running on the Oracle database, only specifically authorized medical professionals will be able to access patient data. 

“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 president of vertical industries at Oracle. “This can be done very quickly because Cerner’s largest business and most important clinical system already runs on the Oracle Database…” 

“In an emailed statement to EHRIntelligence, Natalie Schibell, a senior analyst at Forrester, noted that the acquisition’s success will be primarily determined Oracle’s cloud-first strategy…” Read the full article here. 

Source: Oracle Acquires EHR Vendor Cerner for $28.3 Billion in Equity – By Hannah Nelson, December 20, 2021. EHR Intelligence. 

“Microsoft said in April it plans to pay $16 billion in cash for Nuance Communications, which builds artificial intelligence and other digital tools for health industry clients. Amazon acquired startup health application company Health Navigator in 2019 and folded it into Amazon Care, the e-commerce giant’s virtual health business.” 

“With that bit of commercial but important context out of the way: we do acknowledge Cerner’s federal business was likely not the carrot in Oracle’s eye, but is certainly noteworthy…” 

“The questions we have from this corner start and end with this: just what will the VA make of Oracle’s agreement to acquire Cerner? The transaction will go through an antitrust regulatory review just like Microsoft-Nuance…” Read the full article here. 

Source: What Oracle’s planned $28B Cerner acquisition means to federal – By Ross Wilkers, December 20, 2021. Washington Technology. 

0
Tags:

Tagged: , , ,

This topic contains 0 replies, has 1 voice, and was last updated by  Heather Seftel-Kirk 1 month ago.

  • Author
    Posts
  • #97094
     Heather Seftel-Kirk
    • Writer
    • G2Xchange

    Replies viewable by members only

    0

You must be logged in to reply to this topic.

CONTACT US

Questions?. Send us an email and we'll get back to you, asap.

* Required


©2022 MileMarker10, LLC all rights reserved | Community and Member Guidelines | Privacy Policy | About G2Xchange Health

Federal Government Employees Join Free

As a special thank you to all the federal agencies that have been supportive of our efforts over the years we offer a free individual membership to Federal Government employees.  Membership includes:


Full Access to the G2Xchange Health website, including exclusive member content.

Access to Forums, Comments, and Discussions

Member Directory

Private Messaging

The G2Xchange Health Daily Take Newsletter which includes the latest intelligence, news, and happenings from across the Federal Health IT Market.

Exclusive Discounts on G2Xchange Events and G2Xchange Partner Events.

Click Here to Join


THANK YOU
FOR YOUR
SUPPORT


Opportunities. Starting Points.

About our Data

The Vault is a listing of expiring contracts, task orders, etc. within a certain set of parameters, to include:

  • Have an initial total estimated contract value of $3 million or above
  • Federal Health Only – MHS/DHA, HHS, CMS, or VA Actions
  • NAICS codes include: 511210, 518210, 519130, 519190, 541511,
    541512, 
    541513, 541519, 541611, 541618, 541690, 541720, 541990
  • Were modified within the last 12 calendar months
  • The data represented is based on information provided by the Government

Who has access? Please note that once the Vault product is no longer in the Beta testing phase, ALL G2Xchange Health Members will receive access to all basic and much of the advanced data. G2Xchange Health Corporate Members will receive access to ALL Vault content (basic and advanced).

Feedback/Suggestions? Contact us at Vault@G2Xchange.com and let us know what you think. 

G2Xchange Health, a service of MileMarker10

Log in with your credentials
for G2Xchange Health

Forgot your details?