Oracle to buy electronic health records company Cerner for $28 billion
Oracle has announced that its deal to acquire Cerner Corp. will close on June 8, 2022. Cerner is a provider of digital information systems used within hospitals and health systems by medical professionals.
Oracle said that a majority of the outstanding shares of Cerner Corporation were validly tendered, and the other conditions to the tender offer have been satisfied or waived.
American Stock Transfer & Trust Company LLC, the depositary for the tender offer, has indicated that as of 12:00 midnight, Eastern time, at the end of the day on June 6, 2022, approximately 204,280,589 Shares, or 69.2% of the total Shares, have been validly tendered.
Larry Ellison, Oracle's chairman of the board and chief technology officer, will outline Oracle's strategy to redefine the future of healthcare at a virtual event on June 9, 2022, at 3 p.m. CT, which can be registered for at www.oracle.com/events/live/future-of-healthcare. Ellison will be joined by thought leaders, healthcare pioneers, and technology innovators, including Brenna Quinn, chief product officer, Cerner.
Oracle previously announced on June 1 that all required antitrust approvals have been obtained for its proposed acquisition of Cerner, including European Commission clearance.
“Working together, Cerner and Oracle have the capability to transform healthcare delivery by providing medical professionals with a new generation of healthcare information systems,” said Larry Ellison, chairman and CTO, Oracle, when the approval was announced. “Better information enables better treatment decisions resulting in better patient outcomes. Our new, easy-to-use systems are designed to lower the administrative workload burdening our medical professionals while improving patient privacy and lowering overall healthcare costs.”
Oracle CEO Safra Catz added, “We expect this acquisition to be substantially accretive to Oracle’s earnings on a non-GAAP basis in fiscal year 2023. Healthcare is the world’s largest and most important vertical market—$3.8 trillion last year in the United States alone. We expect Cerner to be a huge growth engine for years to come.”
Oracle shared highlights of the deal in its earlier announcement:
- An all-cash tender offer for $95.00 per share, or approximately $28.3 billion, that is immediately accretive to Oracle’s earnings.
- Substantially accretive to Oracle’s earnings on a non-GAAP basis in fiscal year 2023 and will contribute more to earnings thereafter.
- Cerner will be a huge growth engine for Oracle for years to come as Oracle expands Cerner’s business into many more countries throughout the world.
For more information, go to www.oracle.com