In a press statement, Oracle chairman Larry Ellison stated [PDF] that the acquisition, which also ranks as the largest in its history, will help facilitate the firm’s presence in the health care sector by incorporating health data into its cloud services. The transaction, which is expected to close in 2022 pending regulatory approvals, will see Cerner operate as a dedicated Industry Business Unit within Oracle. Generally, Cerner will be a crucial anchor of Oracle’s expected expansion into the healthcare sector. The companies stated that they intend to utilize resources on both sides to transform the health sector while gathering better information that can influence improved patient treatment outcomes. Notably, the acquisition will integrate data that Cerner gathers with Oracle’s data analysis and artificial intelligence tools to highlight patterns and make predictions for effective treatments. Elsewhere, according to Cerner’s CEO, Dr David Feinberg, the acquisition would allow the medical records firm to continue modernizing electronic health data. Additionally, upon completion of the deal, Cerner will immediately integrate into Oracle’s earnings on a non-GAAP basis in the first full fiscal year after the closing date.
Software companies expanding into health care
Oracle now joins other leading software companies in expanding their footprint into the medical space. Recently, Microsoft reached a $16 billion deal to buy speech artificial intelligence company Nuance Communication. Overall, the technology and health sectors have led the 2021 M&A activity, which topped $5 trillion in 2021.
