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On June 8th, 2022, Oracle acquired Cerner Corporation, a publicly traded company in the healthcare service industry, for $28 billion. Oracle, a publicly traded company
in the software industry, used its indirect wholly-owned subsidiary, Cedar Acquisition Corporation, and a wholly-owned subsidiary of OC Acquisition LLC to complete the acquisition. The purchase price was $95 per share, which implies a 5%
premium on the average 7-month average of Cerner's shares.
Cerner has a market capitalization of $27 billion, revenue of $5 billion, an income of $589 million, and a PE ratio of 47.6. On the other hand, Oracle has a market capitalization of $197 billion, revenue of $42 billion, an income of $6.7 billion, and a PE ratio of 30.7.
The acquisition is seen as Oracle's entry into the healthcare industry, as Cerner specializes in healthcare technology, including digital records, cloud storage, virtual assistance, and more. Oracle's technological expertise can help improve Cerner's services to hospitals and clinics.
However, concerns have been raised about the sensitivity of the data that Cerner handles, which is protected by HIPAA. It is essential to keep this data secure and backed up.
Regarding stock values, Cerner's stock was valued at $93.19 on December 31, 2021, and it was valued at $95 per share on the day before the acquisition. As for Oracle, its share value decreased from $72.23 on May 31, 2022, to $68.21 on June 30, 2022, but improved by 5% in July to $74.8.
References
Cerner Corperation. (2022, July 27). Cerner Corp. (NMS: CERN). Retrieved from www-mergentonlinecom.: https://www-mergentonline-com.ezproxy.snhu.edu/equitypricing.php? ddexchange=156782104%7C1%7C0&timeperiod=1+month&datetype=userdefrang
e&datestartu serdef=11%2F01%2F2021&dateenduserdef=07%2F27%2F2022&frequency=monthl
y&compnum ber=49493&pagetype=report&selecte CFI Team. (2021, March 28). Acquisition Premium. Retrieved from corporatefinanceinstitute.com: https://corporatefinanceinstitute.com/resources/knowledge/deals/acquisition-
premium/ Craig, A. (2022, July 29). Mergers in recent news. Retrieved from learn.snhu.edu: https://learn.snhu.edu/d2l/le/content/1088217/viewContent/18879242/View Oracle Corporation. (2022, June 8). Oracle Corp. 2022 History. Retrieved from www-
mergentonline-com: https://www-mergentonline-com.ezproxy.snhu.edu/companydetail.php? pagetype=history&compnumber=46032 Vaidya, M. T. (2022). Mergers vs Acquisitions: Difference Between Mergers and Acquisitions. Retrieved from www.wallstreetmojo.com: https://www.wallstreetmojo.com/mergers-vs-acquisitions/
Hi Schallon
I enjoyed reading about the acquisition of Heinz and Kraft. What I found most interesting was that the merger happened due to the changing trends in the food industry. Consumers are now shifting towards healthier and more natural products,
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