Oracle’s Acquisition of Cerner: Factors That Influenced the Decision.

In June 2022, 甲骨文 Corporation, a tech giant, acquired Cerner Corporation, a leading healthcare IT provider, for a whopping amount of USD 28.3 billion. This decision was aimed at strengthening Oracle’s footprint in the health tech sector. It is worth noting that this acquisition is one of the biggest deals the tech giant has ever closed, especially in a sector which is not its primary strength.

Oracle's acquisition of Cerner Corporation is expected to enable clinicians to access cloud-based digital tools that simplify information retrieval. Analysts speculate that the deal may help address the problem of patient data silos and interoperability challenges that exist between hospitals and health systems. The acquisition of Cerner is proving to be profitable for both companies, and Oracle is making robust strategies to expand Cerner’s businesses across various nations worldwide.

Before finalizing the deal, Oracle focused on key factors such as financials, market position, strategic fit, and culture. It evaluated Cerner’s financial position, including its debt levels, profitability, and any outstanding legal or tax issues. The company also assessed Cerner's position in the global market, including its market share, customer base, and pricing strategy. Besides, Oracle evaluated whether the acquisition would fit into its existing operations, product lines, and target markets. Finally, it made an in-depth evaluation to ensure whether Cerner’s culture aligns with its own and whether there will be any cultural clashes that could impact the success of the acquisition.

Notably, other companies also go through a similar evaluation process before making any acquisition deal. Conducting a thorough due diligence process is critical before acquiring any company. It helps buyers to identify any potential risks or issues that could impact the success of the acquisition and ensure that they are making a sound investment decision.

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