R
Ron Miller
Guest
Who says the holiday week is a slow news week? Oracle was kind enough to help tech journalists weary from working on year-end stories with some big news today when the database giant announced it was buying electronic healthcare records company Cerner in a deal valued at 95.00 per share, or approximately a press release announcing the deal.
With this deal, Oracle moves in a big way into the healthcare vertical, a growing market, and one which should help bolster Oracle’s fledgling cloud infrastructure business, which is languishing in the single digits, according to Synergy Research.
Holger Mueller, an analyst at Constellation Research, says it’s the biggest deal in Oracle history, a company that has a long history of being acquisitive. “It’s a smart move by Oracle. It cements Oracle technology even deeper into Healthcare, and brings a lot of current and especially future work load to Oracle Cloud. Not to mention that Oracle is buying into the largest and fastest growing vertical industry,” Mueller told me.
“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,” Catz said in a statement.
It’s worth noting, however, that as Catz talks of international expansion, Microsoft made a similar play into healthcare earlier this year when it announced it was acquiring Nuance Communications in a deal valued at \)"> 19.7 billion. Today that deal is facing headwinds from regulators in the U.K. It will be interesting to see if this deal runs into similar regulatory scrutiny as it advances next year.
As for Cerner, David Feinberg, president and CEO, who just took over in the role in October, saw an opportunity for shareholders and he grabbed it. Of course, he frames the deal in the way most CEOs do, as a way to expand its markets in a way that wouldn’t be possible as a stand-alone company.
“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,” Feinberg said in a statement.
This is a breaking story. More to come.
As for Cerner, David Feinberg, president and CEO, who just took over in the role in October, saw an opportunity for shareholders and he grabbed it. Of course, he frames the deal in the way most CEOs do, as a way to expand its markets in a way that wouldn’t be possible as a stand-alone company.
“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,” Feinberg said in a statement.
This is a breaking story. More to come.