On Monday, Enterprise software maker Oracle Corp (ORCL.N) said, it would buy electronic medical records company Cerner Corp (CERN.O) for $28.3 billion, a bid to strengthen its presence in the healthcare sector.
Cerner shareholders will receive $95 in cash for every share they hold, representing a premium of 5.8% to the company’s closing price on Fri.
The deal, which will be Oracle’s biggest ever after its acquisition of PeopleSoft in 2004, will facilitate the software maker to bolster the services it provides to healthcare clients as well as insurers.
Cerner, the largest seller of software used for electronic recording of healthcare data in the U.S. after Epic Systems Corp, will provide Oracle access to data it can use to train and improve its artificial intelligence-based cloud services.
With Cerner, which already has its largest business and a clinical system already on the Oracle database, Oracle aims to provide healthcare professionals with digital tools that alter access to data through a hands-free voice interface to secure cloud applications.
Oracle said it expects the deal to add to revenue growth as it expands Cerner’s business into additional countries. Cerner is expected to be increasing to earnings on an adjusted basis in the initial full twelvemonth and contribute “substantially more” thenceforth.
the company further, once the deal closes, possible in 2022, Cerner will be organized as a fanatical industry business unit inside Oracle.
Since the pandemic began, demand for cloud-based solutions within the healthcare sector has picked up the pace, as well as telehealth services as well as automation of health records.
The boom has also led to enterprise software companies signing additional deals in the health sector, like Microsoft Corp’s (MSFT.O) $16 billion buyout offer of Nuance Communications Inc (NUAN.O) and PE firms Hellman & Friedman LLC and Bain Capital’s deal to buy Athenahealth for $17 billion this year.