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

June 02, 2022 02:07 PM PDT | By Mridul Gogoi

Image source: © Alexeynovikov | Megapixl.com

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.

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