As tech giants double down on expanding their capacity, Oracle is also not left out in this journey. It comes just on the verge of Christmas that the aforementioned company took a bold step when it announced it was acquiring electronic health records company Cerner for $28 billion, however, yesterday Oracle closed the deal which is effective today.
According to a source, which considered Oracle’s announcement as anticlimactic in some proportion, full of corporate-speak: “Oracle Corporation (NYSE: ORCL) announced that a majority of the outstanding shares (the “Shares”) of Cerner Corporation (Nasdaq: CERN) were validly tendered, and the other conditions to the tender offer have been satisfied or waived. The deal will closed on June 8, 2022”, the company wrote in a statement.
This was also viewed as a deal that got past the oversight of the world’s regulatory bodies while paying off the amount due. With the contract signed and the stock transferred overnight, the subject deal is effectively done.
In another dimension, it should be borne in mind that the OS and tech giant – Microsoft also paid about $20 billion for Nuance Communications in April 2021, a deal which was closed in March. To dive headlong into the healthcare market, Oracle paid the sum for Cerner, while noting the same market potential as Microsoft.
At the time the deal was made public, ‘Holger Mueller’, an analyst at Constellation Research, made clear it would bring the lucrative market to Oracle Cloud, which is understood as the primary reason why Oracle closed the said sum.
“It’s a smart move by Oracle. It cements Oracle technology even deeper into healthcare and brings a lot of current and especially future workload to Oracle Cloud. Not to mention that Oracle is buying into the largest and fastest-growing vertical industry”, per TechCrunch.
Cerner certainly has the potential to deliver, but that depends on how the two companies fit in the end.
- What’s your take on this?