The news: Oracle is reportedly in talks to acquire electronic health records (EHR) giant Cerner in a deal valued around $30 billion—which would be the biggest deal ever for Oracle, per The Wall Street Journal.
The significance of the deal: Even though Oracle is a legacy tech company, it has fallen behind tech giants like Microsoft, Google, and Amazon when it comes to cloud computing—this deal would change that.
What would this mean for the EHR market? Cerner is the second-largest EHR player on the market, holding 25% of the US’ total EHR market—just behind Epic’s 31%.
"Oracle could triple down on healthcare and make some significant investments, post an acquisition, such as making internal R&D resources for additional AI and ML investments or accelerating the transition to cloud"
- Michelle Mattson-Hamilton, ST Advisors
What’s next? Healthcare stakeholders will be increasingly relying on cloud computing tech and better EHR integration to boost their businesses.
Note: This article was written before the December 20 announcement that Oracle officially acquired Cerner.