![]() 10, after a better-than-expected earnings report, Oracle's stock shot up 16%, it second-best day in two decades. Cash deal is challengingĭespite Monday's slide, the transaction comes amid revived Wall Street optimism toward Oracle. At $95 a share, the purchase price amounts to a 20% premium over Cerner's closing price on Thursday, prior to news reports that the companies were in late-stage talks. Oracle shares fell 5% after the deal was announced on Monday. Hospitals and medical facilities use the software so that doctors and staffers can share imaging data, patient reports and prescriptions in a secure way. The biggest came in 2019, when IBM closed its $34 billion purchase of Red Hat.Ĭerner, which was founded in 1979, two years after Ellison created Oracle, is the second-largest provider of electronic medical records technology, behind Epic. Oracle's purchase of Cerner, assuming it gets approved by regulators and Cerner stockholders, will be up there with the largest software deals ever. That deal was rejected by Five9 shareholders after a slide in Zoom's stock price made the combination unattractive. Microsoft said it's buying speech recognition software provider Nuance Communications for $16 billion, and Zoom agreed to buy contact center software company Five9 for $14.7 billion in stock. This year alone, Salesforce closed its $27.1 billion purchase of Slack, and Square announced plans to buy Australian fintech company Afterpay for $29 billion. Ellison, Oracle's chairman, was NetSuite's biggest shareholder, with ownership of roughly 40% of the company at the time. It's the first mega-deal for Oracle since the $9.3 billion purchase of cloud business management software vendor NetSuite in 2016. Rivals have used their expanding market cap and swelling cash piles to buy growth or to get into a market that can keep them relevant as the world goes cloud, mobile, and is driven by data. In agreeing to buy Cerner for almost three times the price of PeopleSoft, Oracle is jumping into the modern era of M&A - one that is new to Ellison. That came in 2004, when Oracle bought PeopleSoft for $10.3 billion after a hostile battle that lasted 18 months. In 2009, Oracle agreed to pay $7.4 billion for Sun Microsystems, opening its wallet for servers and storage networks to go beyond software and become what Ellison called an "integrated system" company.īut before this week Ellison had scored only a single deal in double-digit billions. On 15 occasions since 2005, Oracle has shelled out at least $1 billion for an acquisition. ![]() Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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