Cerner and Oracle jointly announced an agreement Dec. 20 for Oracle to acquire Cerner in a $28 billion deal.
Eight things to know:
1. Software giant Oracle will buy Cerner through an all-cash tender offer for $95.00 per share, or about $28.3 billion in equity value, the companies said.
2. Cerner will become a dedicated industry business unit within Oracle. Under the deal, Oracle will also make its hands-free voice assistant the primary interface to Cerner's clinical systems, allowing clinicians to make commands in the EHR via voice instead of typing on the computer keyboard.
3. The transaction is expected to close in 2022, subject to certain regulatory approvals and other closing conditions, including Cerner stockholders tendering a majority of the EHR company's outstanding shares in the tender offer.
4. In August, Cerner tapped David Feinberg, MD, to serve as its new president and CEO. Dr. Feinberg, former head of Google Health, assumed his role at the EHR company Oct. 1. In the news release, Dr. Feinberg said Cerner's position joining Oracle "provides an unprecedented opportunity to accelerate our work modernizing [EHRs], improving the caregiver experience, and enabling more connected, high-quality and efficient patient care."
5. Dr. Feinberg also emphasized Cerner's excitement about Oracle's commitment to maintain its community presence, including around its Kansas City, Mo.-based headquarters. Oracle also plans to use its own global networks to expand Cerner's footprint.
6. Cerner's revenue growth rate has been increasing over the past year, suggesting it will boost growth for Oracle in the future, the companies said in the news release.
7. By leveraging the large technological resources of Oracle, Cerner will have the potential to accelerate its product and technology development lines, possibly allowing for care that is more efficient and connected, the companies said. Systems from Cerner that run on the Oracle Gen2 Cloud will be available all year round at all times.
8. This deal with Cerner is Oracle's biggest yet. Oracle, with a market value of more than $280 billion, currently provides cloud infrastructure and applications in industries including financial services, telecommunications, utilities, pharmaceuticals, hospitality, retail, food and beverage, construction and engineering, manufacturing and government.