DARKTRACE_ITSECURITYCY21_RANSOMWARE_TECH_NEWS_HUB_728_X_90_JPEG_EN.jpg
TechNewsHub_Strip_v1.jpg

LATEST NEWS

  • Chris Bratton - Tech Journalist

Oracle in talks to buy health records Cerner Corp. for $30 billion

American multinationals computer technology company Oracle is a popular name in the industry. Their presence in healthcare is not ignorable as technology is helping insurers and public health systems parse data. The company is in talks to buy an electric medical records company, Cerner Corp. On Monday, Oracle said they had agreed to pay $28.3 billion for Cerner, but it could reach $30 billion.



If Oracle sees through this, it will be the biggest purchase for the company to date. Cerner handles a massive amount of health data that could use a helping hand. And such hand should be capable enough to bear the expenses. That’s when Oracle came in.


Oracle already had its foot wet in the sector, providing valuable technological input, making lives easier for many. The acquires will empower Cerner to expand and keep the work running. It should be one of the biggest acquisitions of 2021.


Cerner Corp. is one of the largest providers of electronic health records in the US, the second largest to be exact. Epic Systems Corp is ahead of Cerner, but they offer complete IT services.


At the moment, Oracles (ORCL) share took a dip of -0.16 per cent, and Cerner (CERN) grew 0.35 per cent. It’s pretty average for the acquisition market; sometimes, it falls down and then picks itself up again.


The deal could transfer Oracle from an IT giant to a full-fledged healthcare system, according to expert talks. Agreements are still on paper but should be finalized soon. Oracle has a market value of $280 billion, and buying Cerner at a hefty price tag surely rocks board members seat a little.


Cerner designs are currently based in Kansas City; they design software for hospitals and doctors. The software’s can easily store and analyse medical records or healthcare data. The current market value for this infrastructure is $23 billion. But the acquisitors should not be the exact value of a company, but an overpay needed to convince stockholders. A premium of $30 billion may as well go from Oracle’s account with the purchase.


Oracle was formerly based in Silicon Valley, where it conducted business for an extended period. Later relocated themselves to Austin, Texas. It is one of the largest software providers for companies and organisations. If you keep a careful eye, chances are while installing computer software’s, their logo will pop up.


Being a Silicon Valley veteran indeed has its perks as it proves the dominance and capability of a company. As a result, we can still see Oracle powering some of the largest names in IT at their core infrastructure.


David Feinberg came from Google to join Oracle as the chief executive officer. Before that, he led Alphabet Inc. parent company of Google. Alphabet Inc. is interested in the healthcare industry and partnered with some of the largest hospital systems to collect their data for analysis.


Health insurers, public health systems, healthcare provides all are under Oracle’s radar, as they are helping the public health system by fuelling with accurate data. Data parsing system helped improve efficiency and outcomes of patients.


On Thursday, Oracle shares closed at $103.22. it was down for a bit due to the sell offseason and later reached an all-time high for the day. Within last week it jumped 15 per cent higher than the company’s fiscal yearly report was published.


Chief executive Safra Catz reiterated the expectation once again and expected the ‘company’s operating margins to be the same or better than they were pre-pandemic,’ according to the Wall Street Journal. Share purchase authorisation also grew by $10 billion.

Cerner is the next goal for Oracle to dive deep into the healthcare industry, letting them help more people and gain a more significant revenue margin. Cloud computing is the next target to achieve for the company, and the constant pivoting makes Oracle a great competitor for Microsoft and Amazon in the coming days.

EMARSYS_300x600.png
Gamma_300x600.jpg
paypal.png
Scheider_300x600.jpeg