Global healthcare data analytics giant Cerner has been acquired by Oracle, the deal has been completed. After Wall Street Journal reported the news that Oracle was in talk to acquire Cerner for $30 billion, Oracle has now officially shared the news that the deal has been finalized, representing approximately $28.3 billion in equity value.
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Cerner is a leading developer of digital information solutions that help medical professionals provide better care to individual patients and communities in hospitals and health systems. Cerner has been upgrading electronic health records, enhancing the caregiver experience, and optimizing and automating clinical and administrative procedures for almost four decades. The acquisition of Cerner by Oracle is scheduled to be completed in 2022.
Oracle’s current technologies, such as cloud, AI, ML, and other advancements, would provide a significant opportunity to assist clients employ Oracle’s modern technologies to make care more accessible, secure, efficient, and effective for patients and caregivers. Oracle and Cerner are dedicated to continuing and improving health data stewardship, which will be aided by Oracle’s worldwide operating infrastructure.
“Working together, Cerner and Oracle have the capacity to transform healthcare delivery by providing medical professionals with better information – enabling them to make better treatment decisions resulting in better patient outcomes,” said Larry Ellison, Chairman and Chief Technology Officer (CTO) at Oracle. “With this acquisition, Oracle’s corporate mission expands to assume the responsibility to provide our overworked medical professionals with a new generation of easier-to-use digital tools that enable access to information via a hands-free voice interface to secure cloud applications. This new generation of medical information systems promises to lower the administrative workload burdening our medical professionals, improve patient privacy and outcomes, and lower overall healthcare costs.”
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Oracle Gen2 Cloud
Oracle’s Autonomous Database, low-code development tools, and Voice Digital Assistant user interface would enable Cerner to quickly upgrade its systems and migrate them to Oracle’s Gen2 Cloud. Cerner’s largest business and most significant clinical system currently operates on the Oracle Database, so this can be done rapidly. There isn’t anything to modify there, only the user interface will be altered.
Cerner systems operating on the Oracle Gen2 Cloud will be available 24 hours a day, seven days a week, 365 days a year. In the medical context, the goal is to have no unscheduled downtime.
By making Oracle’s hands-free Voice Digital Assistant the primary interface to Cerner’s clinical systems, Oracle can make Cerner’s systems considerably easier to understand and use. Medical workers will be able to spend less time typing on computer keyboards and more time caring for patients as a result of this, according to Oracle.
“Healthcare is the largest and most important vertical market in the world – $3.8 trillion last year in the United States alone,” said Safra Catz, Chief Executive Officer (CEO) at Oracle. “Oracle’s revenue growth rate has already been increasing this year – Cerner will be a huge additional revenue growth engine for years to come as we expand its business into many more countries throughout the world. That’s exactly the growth strategy we adopted when we bought NetSuite – except the Cerner revenue opportunity is even larger.”
Separate Oracle Industry Business Unit
Cerner is convinced it will increase the speed of product and technology development by using Oracle’s resources, infrastructure and cloud capabilities to allow more connected, high-quality, and efficient care.
Oracle and Cerner are dedicated to continuing and improving health information stewardship, which will be aided by Oracle’s worldwide operating infrastructure. Cerner will be structured under Oracle as a separate Industry Business Unit. The company will be Oracle’s cornerstone asset as it expands into healthcare. Oracle plans to preserve and expand Cerner’s community presence, especially in Kansas City, while leveraging Oracle’s worldwide footprint to quickly reach new areas.
“Cerner has been a leader in helping digitize medical care and now it’s time to realize the real promise of that work with the care delivery tools that get information to the right caregivers at the right time,” said David Feinberg, President and Chief Executive Officer, Cerner. “Joining Oracle as a dedicated Industry Business Unit provides an unprecedented opportunity to accelerate our work modernizing electronic health records (EHR), improving the caregiver experience, and enabling more connected, high-quality and efficient patient care. We are also very excited that Oracle is committed to maintaining and growing our community presence, including in the Kansas City area.”