After Oracle may be acquired, Cerner’s stock price soars

After reports that the electronic health record giant may be acquired by the cloud application company Oracle, Cerner’s stock price rose on Friday morning.

Cerner’s stock price closed at $79.49 on Thursday and opened at $90.92 on Friday.

Affected by this news, Oracle’s stock price fell, opening at $97.69 on Friday and closing at $103.22 on Thursday.

According to reports, Oracle is negotiating to acquire Cerner. Wall Street Journal It was published on Friday evening, citing people familiar with the matter. According to reports, the deal will be finalized soon, and it will be Oracle’s largest acquisition to date — exceeding the approximately $10 billion that Oracle paid for enterprise software company PeopleSoft in 2005.

The Wall Street Journal estimates that, based on Cerner’s market value, the value of the Cerner acquisition may be around US$30 billion.

Oracle and Cerner did not immediately respond to Modern Healthcare’s request for comment.

Cerner, which sells EHR systems and other enterprise software to medical institutions Including the Department of Veterans Affairs, Can support Oracle’s healthcare product portfolio, which already includes the tools it sells to insurance companies, vendors, and the public health system. Cerner, like other EHR suppliers, in recent years Seek business diversification Use tools and services that utilize patient data.

Cerner’s biggest competitor in the EHR field is Epic Systems, of which Epic accounts for 31% U.S. hospital market last year, Followed by Cerner, accounting for 25%.

Cerna in August Dr. David Feinberg announcedHe once led Google Health and served as the company’s new CEO. Feinberg once said He hopes that Cerner will focus on developing tools for making EHR-often cited as Drivers of doctor burnout-Easier to use and equipped with analytical tools that support patient care.

Cerner announced that its revenue for the third quarter of 2021 was US$1.5 billion, an increase of 7.2% year-on-year, and its operating profit was US$224.9 million, down from US$411.8 million in the same period last year.

Oracle reported that its revenue for the second quarter of fiscal year 2022 was US$10.4 billion, which was the most recently reported period and increased by 5.7% year-on-year. The company reported an operating loss of US$824 million for the quarter, while operating income for the same period in fiscal 2021 was US$3.6 billion.