Santa Clara’s Oracle to purchase Missouri health tech giant Cerner for $28.3bn

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Santa Clara’s Oracle to purchase Missouri health tech giant Cerner for $28.3bn

Oracle Corp., the Santa Clara, California-headquartered one of the world’s oldest computer software companies, said in a statement on Monday that the Californian business software maker would purchase a Missouri-based American health technology giant Cerner Corp in a $28.3 billion buyout deal which in effect would mark off Oracle Corp’s largest-ever acquisition while providing the world’s second-largest software company with an access to a whirlpool of customers’ data from one of the largest health-tech firms in the United States.

According to financial terms of the Cerner Corp buyout deal, Oracle Corp had agreed to lay off a $95 per share in cash for each share Centre stakeholders were holding, representing a premium of 5.8 per cent contemplating the company’s Friday closing price.

Nonetheless, followed by the announcement, shares’ prices of Oracle Corp dived as much as 5.14 per cent to $91.64 apiece amid a broad-based decline in the day’s Wall Street, while Center Corp had managed to wind up the session 0.80 per cent higher to $90.49 per share after soaring more than 1.0 per cent in pre-market trading.

Oracle to purchase health-tech mogul Cerner in all-cash $28.3bn deal

In point of fact, Cerner’s health technology software usually conducted operations on its clients’ data centers, though it shifted to AWS (Amazon Web Services) back in the 2019 as its preferred cloud services provider.

However, as the deal would likelier to leverage Oracle Corp in a fast-growing healthcare data industry and to lure in more healthcare clients on its cloud platform, adding that the Californian software industry behemoth would move Cerner’s software to its own cloud computing service, executive Vice President for Vertical Industries at Oracle, Mike Sicilia said in a statement, “This can be done very quickly because Cerner's largest business and most important clinical system already runs on the Oracle Database”.