Oracle acquires medical records firm Cerner

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A sign is displayed in front of Oracle’s headquarters on December 9, 2021 in Redwood Shores, California.

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Enterprise software giant Oracle will buy electronic medical records company Cerner in an all-cash transaction for $ 95 a share, or about $ 28.3 billion in equity.

The deal, which is expected to close in calendar year 2022, could help Oracle strengthen its presence in healthcare by bringing a wealth of healthcare data to its cloud services.

Oracle shares were down more than 2% on Monday morning after the companies announced the agreement. Shares initially fell 6% on Friday after The Wall Street Journal first reported Oracle would buy out Cerner.

The massive acquisition is the largest ever for Oracle, one of the world’s largest software vendors. The company, founded in 1977, had a market capitalization of around $ 264 billion as of Monday morning.

It comes amid an increase in global mergers and acquisitions. Mergers and acquisitions topped $ 5,000 billion for the first time in 2021, led by tech and healthcare, report says cited by Reuters.

Oracle said the acquisition would immediately increase the company’s earnings on a non-GAAP basis in the first full fiscal year after closing. He expects Cerner to be “a huge driver of additional revenue growth for years to come,” he added.

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