Oracle Corp. will buy Cerner in an all-cash tender offer for $95 per share, or about $28.3 billion in equity value, according to an announcement today.
The joint formal news release from Oracle and Cerner comes days after news broke about Oracle acquiring Cerner, which is a Kansas City-based company.
According to the announcement, the transaction is expected to close during calendar year 2022. It is subject to regulatory approvals and closing conditions including Cerner stockholders tendering a majority of Cerner’s outstanding shares in the tender offer, the announcement stated.
Oracle provides computer technology for some of the world’s largest industries, including in the financial services, telecom, pharmaceuticals, retail, manufacturing and other areas.
Cerner is a provider of digital information systems used within hospitals to enable medical professionals to deliver better healthcare to individual patients and communities.
Joe Reardon, president and CEO of the Greater Kansas City Chamber of Commerce, issued this statement:
“Cerner is a key partner in the Kansas City region and has been for decades. They are an example of a homegrown business that has seen tremendous global success. In fact, the KC Chamber recognized them as the Mr. K Small Business of the Year in 1988 and they have grown to be our region’s largest private employer. Cerner operates in a very competitive and growing market so it is not surprising such a successful company would be sought out by others, especially in a global market.
“We’ve seen recent mergers like Kansas City Southern and Canadian Pacific, and Sprint and T-Mobile put those KC-grown businesses in stronger positions. In fact, the Sprint Campus became T-Mobile’s second headquarters, and CPKC’s U.S. headquarters is in Kansas City, which puts KC right in the middle of a U.S., Canada, Mexico single line railroad in a newly combined North American rail network. These transformations bring global innovation and exposure.
“Kansas City is an affordable, dynamic city with strong talent at the ready. Whatever the future brings for Cerner, we want to see it continue to grow while keeping strong roots in KC.”