Oracle Corporation will mark its biggest acquisition as it snags electronic medical records business Cerner in an all-cash $28.00 billion agreement.
This massive move reflects the efforts of the computer software firm towards the healthcare vertical.
This industry is a relevant growing market with a $3.80 trillion value in the United States alone.
Accordingly, the deal will close in the calendar year 2022 that could bolster Oracle’s fledgling cloud infrastructure business.
After the announcement, its share price sharply plummeted 5.14% or 4.97 points to $91.64 per share in Monday’s regular trading session.
In the after-hours market, it slightly edged up 0.61% or 0.56 points to $92.20 per share.
Oracle is one of the most extensive software providers worldwide. It currently holds a market capitalization of $250.51 billion.
Moreover, the business mentioned that the accession would be on its earnings on a non-GAAP basis in the first full fiscal year.
At the same time, it forecasts Cerner to be a significant revenue growth engine soon as it widens its products across more countries.
Eventually, the companies forecast that the partnership will contribute substantial earnings in the second fiscal year of Oracle.
Cerner is a leading firm in the healthcare IT industry, whereas it provides digital information systems utilized within hospitals.
The business enables medical professionals to provide better services to modernize electronic health records.
In line with this, the accord between Oracle and Cerner aims to transform healthcare to be more accessible, secure, and effective.
Oracle Tracks Microsoft in Healthcare Push
Correspondingly, Oracle’s latest plan came a few months after Microsoft made a similar purchase.
The highly valued tech company announced its $19.70 billion investment in Nuance Communications, which previously worked with Cerner.
These decisions came along with a surge of global mergers and acquisition activity, reaching an overall value of $5.00 trillion.
Recently, software giants initiated their way into the healthcare business, which gradually grew into cloud computing.
The medical industry is one of the largest sectors in America. It has a slow move to higher technology due to its complex rules on digital record-keeping.