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ORCL, CERN: 11 Things to Know as Oracle Buys Cerner in $28.3B Mega Healthcare Move

Oracle (NYSE:ORCL) and Cerner (NASDAQ:CERN) stock are in the news Monday thanks to a massive acquisition deal between the two companies.

ORCL stock: a 3-dimensional Oracle sign in an outdoor setting representing the CERN stock deal today.

Source: JHVEPhoto / Shutterstock.com

Let’s dive into that news below!

  • Oracle is acquiring Cerner for a total of $28.3 billion.
  • The company is using cash to fund a tender offer for CERN shares.
  • This has it valuing CERN stock at $95 per share.
  • It’s worth noting that reports of the merger first broke on Friday.
  • At the time, that saw CERN stock soaring from its Thursday closing price of $79.49.
  • Oracle and Cerner are expecting the deal to close during 2022.
  • ORCL also points out that the acquisition will be immediately accretive to its earnings.
  • That includes benefiting it on a non-GAAP basis.
  • It’s also expecting Cerner to continue to bring in growing revenue for several years.
  • The deal still needs to complete customary closing conditions.
  • That includes holders of CERN stock offering up a significant enough amount of shares for the tender offer.

Safra Catz, CEO of Oracle, said the following about the acquisition moving shares of ORCL and CERN stock today.

“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.”

ORCL stock is down 3.2% and CERN stock is up slightly as of Monday morning. It’s worth highlighting CERN stock already got a boost when the acquisition news broke on Friday.

Investors seeking more stock market news for today are in luck!

InvestorPlace has all the latest stock coverage that traders need to know about. That includes Fisker (NYSE:FSR) revealing NFT plans, what has Novavax (NASDAQ:NVAX) stock up today, as well a the biggest pre-market stock movers for Monday! You can find all of that info from the following links below!

More Stock Market News for Monday

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

 


Article printed from InvestorPlace Media, https://investorplace.com/2021/12/orcl-cern-11-things-to-know-as-oracle-buys-cerner-in-28-3b-mega-healthcare-move/.

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