The software giant oracle Announced that it has signed a deal to acquire $ 28.3 billion in cash from medical record company Cerner. This is the biggest deal for Oracle to date. Following the announcement, Oracle shares fell 4% today on Wall Street trading. It completes 11% declines over the weekend so the Wall Street Journal revealed the story, and now Oracle is worth $ 247 billion.
Like other software giants, Oracle is looking for its way to a more significant presence in the field of ehealth. It already has activities in the field, and it offers technology in the field of health insurance, health systems management and public health management.
Serner is also a software company that develops systems designed forHospital, In which medical information is stored and undergoes various types of surgery. Serner is traded at a value of about $ 23 billion, so this is a reasonable premium for this type of purchase, perhaps even in the low direction. In addition to the very activity of Serner, Oracle also receives in this transaction the information accumulated in the company. She will be able to train his algorithms in the medical field on it. Oracle has begun to develop more in recent years in the cloud field, and the acquisition of Serner is also another step in that direction.
According to Safra Katz, the former Israeli CEO of Oracle, Serner’s activities will contribute to the bottom line in terms of non-GAAP from the first year after the closure.
This deal demonstrates that healthcare is the latest huge market in which the major software companies want to revolutionize, and are currently competing with each other, and also with companies that come originally from the medical field, for the premiere in the interface between healthcare and technology. The deal also puts a high price tag on software and information activities in the medical field. Not only is the capital market willing to pay for this, but so are the technology giants themselves.
oracle Recorded revenue of $ 9.7 billion in the quarter ended September, an increase of 4% over the same quarter last year, and a profit of $ 2.5 billion. Serner recorded revenue of $ 1.47 billion, growth of 7%, and profit of $ 176 million.