According to reports, Oracle is negotiating to acquire Cerner, According to the Wall Street Journal. The Wall Street Journal quoted people familiar with the matter as reporting that this $30 billion deal may be finalized soon.
Cerner’s valuation is approximately US$23 billion. The trading news caused its stock price to rise by about 14% on Friday to about $90.92 at the opening.
The Kansas City-based electronic health record company’s business slowed during the pandemic, but bookings have rebounded in recent months. As part of a contract signed with the Department of Defense, the company is currently deploying its recording system, and Cerner said the contract is expected to be completed in 2023.
On the other hand, its $16 billion contract with the Department of Veterans Affairs is Expected to resume early next yearAfter federal regulators discovered billions of unreported costs, Virginia conducted a strategic review of the project.
In September, Dr. David Feinberg Join the company as CEO, After two years of leading Google’s healthcare work.
As the demand for new EHR installations slows, Cerner has positioned itself to do more work on data analysis. Last year, it acquired Kantar Health and merged it into its new Cerner Enviza division, Focus on clinical trial research. In the company Third Quarter Earnings Conference Call, Chief Financial Officer Mark Erceg said that he expects annual revenue to reach 130 million U.S. dollars.
At the same time, Cerner also took measures to cut costs, Going through a round of layoffs This year, it is looking for buyers for its two offices.
If the acquisition is completed, this will be the largest medical technology transaction in a busy year. Competitor Athenahealth Recently caught up in a $17 billion transaction Go private through two private equity firms Bain Capital and Hellman & Friedman.
Large technology companies are also using acquisitions to increase their healthcare business. For example, Microsoft acquires Nuance Spend 19.7 billion US dollars to use its voice assistant software to reduce the burden on clinicians’ health records.
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