Oracle’s $28.3B Cerner deal near after regulatory hurdles cleared
The acquisition will be 'substantially accretive' to Oracle's earnings in fiscal year 2023
Oracle has obtained all required antitrust approvals for its proposed $28.3 billion acquisition of medical record technology provider Cerner.
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The software giant expects to complete its $95 per share tender offer promptly following the expiration of that offer at midnight Eastern Time on June 6.
The closing of the transaction is subject to satisfying certain conditions, including Cerner stockholders tendering a majority of the company's outstanding shares in the tender offer.
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Oracle chairman and chief technology officer Larry Ellison will discuss the Cerner acquisition as well as the company's new suite of cloud-based health management applications during an online event on June 9.
"Working together, Cerner and Oracle have the capability to transform healthcare delivery by providing medical professionals with a new generation of healthcare information systems," Ellison said in a statement. "Better information enables better treatment decisions resulting in better patient outcomes. Our new, easy-to-use systems are designed to lower the administrative workload burdening our medical professionals while improving patient privacy and lowering overall healthcare costs."
The acquisition, which was first announced in December, will be "substantially accretive" to Oracle's earnings on a non-GAAP basis in fiscal year 2023 and will "contribute more to earnings thereafter." Oracle CEO Safra Catz emphasized that Cerner will be a "huge growth engine for years to come."