Oracle has completed its $28.3 billion acquisition of Cerner, the company announced. The deal will finalize June 8.
News that Oracle, the world's largest database management company, intended to acquire Cerner, a provider of digital information systems used within hospitals and health systems, first circulated in late 2021. The deal was Oracle’s largest to date at that time.
Oracle expects the deal to be a “huge growth engine,” as Oracle intends to expand Cerner’s business internationally.
“Working together, Cerner and Oracle have the capability to transform healthcare delivery by providing medical professionals with a new generation of healthcare information systems,” Larry Ellison, chairman and chief technology officer of Oracle, said in a statement. “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.”
Cerner will join Oracle’s industry business unit, and Oracle expects the deal to be substantially accretive to its earnings on a non-GAAP basis in fiscal year 2023.
“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,” David Feinberg, CEO and president of Cerner, said in a statement. “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.”
Closing of the deal is subject to certain conditions, including Cerner stockholders tendering a majority of Cerner’s outstanding shares in the tender offer.
Cerner is one of the top electronic medical record (EMR) providers in the U.S.
Related Content on Oracle:
Oracle may be closing in on $30B purchase of EMR giant Cerner
Oracle’s $28.3B deal to buy Cerner facing antitrust scrutiny, additional lawsuits
Oracle makes healthcare splash with $28.3 billion purchase of Cerner
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."