American software giant Oracle has launched an expansion into the healthcare space, as it finalised an agreement to purchase American technology hardware, device and service provider, Cerner. Cerner also designs software used by medical professionals to store and analyse medical data and records.
Oracle Corporation agreed a deal to acquire Cerner, in terms that include an all-tender offer for $95 per share, approximately $28.3 billion when looking at equity value. The acquisition is expected to be closed in the 2022 calendar year. Currently, the deal is still subject to regulatory approvals as well as Cerner stakeholders tendering most of Cerner’s outstanding shares in the tender offer.
The acquisition of Cerner bodes well for Oracle, whose expansion into the healthcare scene will boost both the reputation and financial strength of the company. The acquisition will not mean that Cerner will cease to exist, but rather that Cerner will begin to operate as a dedicated Industry Business Unit under the umbrella of Oracle, which intends to grow Cerner’s reach by using Oracle’s global footprint to access new areas much faster than would be accessible normally.
Cerner will make use of Oracle’s resources and infrastructure to improve the technological services in order to ensure that it can provide better, faster and more efficient care for patients. Some of the resources belonging to Oracle which will be particularly useful in the deal are Cloud, AI and ML.
All the Cerner systems which will be running on the Oracle cloud will be available at every period in time. Running on the Oracle database will also mean that the information and data will only be accessible to authorised healthcare professionals, with IT workers unable to access the private data.
The Chief Technology Officer and Chairman of Oracle, Larry Ellison said that one of the major benefits of this deal is the reduced workload on the medical professionals, who now have digital tools that make accessing information easier. He also said it would look to improve privacy in the healthcare system.
