Oracle has made an all-cash proposal of Cerner’s US$28.3 billion (A$39.8 billion).
Oracle CEO Safra Catz stated that the acquisition would “significantly add” to the company’s profitability.” “Healthcare is the world’s largest and most significant vertical industry, with US$3.8 trillion in revenue last year in the United States alone,” Catz noted.
“Oracle’s revenue growth rate has already been improving this year – [but] Cerner will be a big additional revenue growth engine for years to come as we extend its company into many more nations worldwide.”
“That’s exactly the growth approach we implemented when we acquired NetSuite, only the Cerner revenue opportunity is significantly bigger.”
Cerner develops digital information solutions for hospitals and health care systems. Oracle stated that it planned to “rapidly modernise Cerner’s systems” by leveraging its technologies, such as autonomous databases, digital voice assistants, and Gen2 cloud. It proposes to modify the user interface of Cerner’s apps in particular. “Because Cerner’s largest business and most significant clinical system already run on the Oracle Database, this can be done extremely fast.”
“There is no need for change there,” said Oracle’s vertical industries executive vice president Mike Sicilia. “The user interface will change.” By making Oracle’s hands-free voice digital assistant the main interface to Cerner’s clinical systems, we will make Cerner’s systems considerably easier to understand and use.
“This will allow doctors and nurses to spend less time typing on computer keyboards and more time caring for patients.” Furthermore, Oracle stated that “Cerner systems operating on the Oracle Gen2 Cloud will be available 24 hours a day, 7 days a week, 365 days a year.”
“[The] aim in the medical environment is to have no unexpected downtime.” The all-cash offer is valued at US$95 per share.
The acquisition is projected to conclude in the calendar year 2022, pending approvals from “cerner stockholders offering a majority of Cerner’s outstanding shares in the tender offer.”
