Oracle has made a US$28.3 billion (A$39.8 billion) all-cash bid for medical software maker Cerner.
The purchase is anticipated to “contribute substantially” to Oracle’s earnings, Oracle CEO Safra Catz said.
"Healthcare is the largest and most important vertical market in the world - US$3.8 trillion last year in the United States alone,” Catz said.
“Oracle's revenue growth rate has already been increasing this year - [but] 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."
Cerner makes digital information systems used in hospitals and health systems.
Oracle indicated that it intended to “rapidly modernise Cerner’s systems” by using its own technology such as autonomous database, voice digital assistant and its Gen2 cloud.
It particularly intends to change the UI on Cerner’s applications.
"This can be done very quickly because Cerner's largest business and most important clinical system already runs on the Oracle Database. No change required there, “ Oracle’s vertical industries executive vice president Mike Sicilia said.
“What will change is the user interface. We will make Cerner's systems much easier to learn and use by making Oracle's hands-free voice digital assistant the primary interface to Cerner's clinical systems.
“This will allow medical professionals to spend less time typing on computer keyboards and more time caring for patients."
In addition, Oracle said that “Cerner systems running on the Oracle Gen2 Cloud will be available 24 by 7 by 365.
“[The] goal is to deliver zero unplanned downtime in the medical environment.”
The all-cash offer represents a value of US$95 per share.
The transaction is expected to close in calendar year 2022, subject to approvals “including Cerner stockholders tendering a majority of Cerner's outstanding shares in the tender offer.”
