Oracle Corp. (NYSE: ORCL) will spend $28.3 billion to acquire Cerner Corp., the two companies announced today.
Cerner is a significant provider of digital information systems used within hospitals and health systems.
The deal is an all-cash tender offer for $95 per share. The companies expect the transaction to close next year, subject to certain regulatory approvals and other closing conditions, including Cerner stockholders tendering a majority of Cerner’s outstanding shares in the tender offer.
Oracle officials think Cerner will prove to be a massive revenue growth engine as it brings Cerner products to more healthcare systems worldwide. In addition, Oracle boasts cloud infrastructure to drive digital modernization, with the potential for its capabilities to do the same in healthcare.
“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,” Oracle Chair and CTO Larry Ellison said in a news release. “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.”