Oracle has finalised its $28.3 billion takeover of Texas-based healthcare specialist Cerner after receiving all the necessary antitrust permits. This is Oracle’s largest acquisition to date, propelling the business into a key position in the healthcare industry.
On the 6th of June, the deal was approved by the European Commission under the EU Merger Regulation. This was one of the final roadblocks to the merger, but the Commission concluded there were no similarities in the companies’ operations and that the merged entity would not be able to engage in foreclosure procedures.
Larry Ellison, Oracle’s Chairman and Chief Technology Officer, stated the company now has the potential to redefine healthcare delivery by providing medical practitioners with a young crop of healthcare information systems as a result of the acquisition’s conclusion.
Cerner will become a separate industry business unit inside Oracle, with non-GAAP profits anticipated to be significantly advantageous to Oracle in fiscal year 2023. Cerner generated $5.8 billion in global revenue in 2021. Although the United Kingdom accounts for only 2% of Cerner’s global income, it is a big NHS supplier. All of the West Hertfordshire Hospitals NHS Trust, London North West University Healthcare NHS Trust, and The Hillingdon Hospitals NHS Foundation Trust, as well as the St George’s, Epsom, and St Helier Hospitals Group, all inked partnerships in 2021 with Cerner.
Cerner’s technologies are already Oracle Database-based, but the company plans to use Oracle’s Independent Database, APEX low-code development tools, as well as voice-enabled user interfaces in the future. Cerner’s customers should benefit from a better user interface and increased productivity as a result of this deal.Â