Oracle said it completed its $28.4 billion acquisition of electronic health records company Cerner.
Technology giant Oracle announced plans to buy Cerner late last year through an all-cash tender offer of $95 per share. On Tuesday, Oracle said the majority of outstanding shares of Cerner were validly tendered and the deal will close Wednesday.
Austin, Texas-based Oracle has described Cerner as the company's "anchor asset" as it expands into healthcare.
Kansas City, Missouri-based Cerner is one of the largest EHR companies, second only to Verona, Wisconsin-based Epic Systems for EHR market share among U.S. acute-care hospitals, according to KLAS Research.
Oracle has said it will maintain Cerner as a separate business unit. It plans to move Cerner's systems to its cloud data centers.
Cerner will be immediately accretive to the company's earnings, according to Oracle.
Cerner posted $206.1 million in net earnings for 2022's first quarter, up 19.7% year-over-year. Its revenue for the quarter rose 3%, to $1.4 billion.
Oracle posted $10.5 billion in revenue, up 4.2%, for the company's fiscal 2022 third quarter, which ended in February. Oracle will release its fiscal fourth-quarter financial results June 13.
The Oracle-Cerner deal is the latest shake-up in the EHR market. Allscripts closed the sale of its hospital and large physician practices business, including various EHR products, in May. Athenahealth—which was taken private in a private-equity deal in 2018—announced plans to be acquired by two private-equity firms in November.
The Cerner acquisition marks the digital health sector's largest mergers and acquisitions transaction, according to data compiled by Modern Healthcare's Digital Health Business & Technology. It's followed by Microsoft's $19.7 billion purchase of Nuance Communications and telehealth company Teladoc Health's $18.5 billion merger with Livongo.