Oracle (ORCL) to buy IT firm Cerner Corp (CERN) for US$28.3 billion

Follow us on Google News:
 Oracle (ORCL) to buy IT firm Cerner Corp (CERN) for US$28.3 billion
Image source: © Alexeynovikov | Megapixl.com

Highlights:

  • Oracle Corp (NYSE: ORCL) has gained EU nod to acquire Cerner Corp (Nasdaq: CERN).
  • Oracle is likely to close the Cerner Corp deal at US$28.3 billion.
  • Oracle’s market cap is US$195.14 billion, while Cerner’s market value is US$27.92 billion.

US software giant Oracle Corp (NYSE: ORCL) has obtained unconditional EU antitrust clearance to acquire healthcare IT firm Cerner Corp (Nasdaq: CERN) for US$28.3 billion.

It was announced by the EU competition enforcer on Thursday.

The acquisition of Cerner Corp will be the biggest ever for business software maker Oracle.

The deal will open a floodgate of information and data to Oracle, which will enable it to draw more healthcare clients to its cloud environment.

The data from Cerner will allow Oracle to train and spruce up its AI-based cloud services.

Also Read: Hormel (HRL) delivers record Q2 sales; stock slips on weak forecast

Oracle (ORCL) to buy IT firm Cerner Corp (CERN) for US$28.3 billionImage Source: Pixabay

Also Read: Palantir (PLTR) stock soars after bagging US$53-mn govt contract

Oracle-Cerner merger poses no threat to rival companies: EU

The acquisition deal does not violate competition rules, and there shouldn’t be any fear or concerns regarding this, the European Commission said. The merged companies will not have the power to cull rival enterprises.  

Earlier, Cerner’s software ran in its clients’ data centers. It then started to shift its service to cloud computing providers like Amazon (AMZN) Web Services in 2019. 

However, things will change after the deal is completed. Oracle will transfer Cerner’s software to its cloud domain and improve the latter’s apps with tools such as voice assistant.

The transition can happen fast because Cerner’s largest business and the most critical clinical system is already running on the Oracle platform.

The deal is likely to be closed this year.

Oracle has a market cap of US$ 195.14 billion, while Cerner’s market valuation is US$27.92 billion.

Bottom line:

The deal will entail Cerner shareholders receiving US$95 in cash per share they hold. The cash for each share represented a premium of 5.8% to the company’s last closing price.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.

Featured Articles