AUSTIN, Texas and KANSAS CITY, Mo. — Oracle is buying the health care digital information services provider Cerner for $28.3 billion.
Oracle made Cerner an all-cash tender offer for $95.00 per share, according to the companies last month.
Cerner systems are used within hospitals and health systems to help medical professionals deliver better care to patients.
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.
The company will be organized as a dedicated industry business unit within Oracle.
The transaction is expected to close in calendar year 2022.
The closing of the transaction is subject to certain regulatory approvals and other closing conditions, including Cerner stockholders tendering a majority of Cerner’s outstanding shares in the tender offer.
Cerner has over four decades of experience modernizing electronic health records (EHRs), improving the caregiver experience, and streamlining and automating clinical and administrative workflows.
Oracle believes its focus on usability and voice-enabled user interfaces will reduce the amount of time that medical providers spend dealing with systems and increase the time they spend directly caring for patients.
There is a “significant opportunity” to help customers use Oracle technologies, such as cloud, artificial intelligence (AI), and machine learning (ML), to make care more accessible, secure, efficient, and effective.
“Working together, Cerner and Oracle have the capacity to transform health care 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 health care costs.”
David Feinberg, president and CEO, Cerner, said the company 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.”
“Joining Oracle as a dedicated industry business unit provides an unprecedented opportunity to accelerate our work modernizing electronic health records, improving the caregiver experience, and enabling more connected, high-quality, and efficient patient care,” Feinberg said.
“We are also very excited that Oracle is committed to maintaining and growing our community presence, including in the Kansas City area.”