Posted on Dec 20, 2021
‘It’s a huge deal.’ What would the sale of Cerner mean to its hometown of Kansas City?
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The news came as little surprise to those who have been paying attention.
For years, rumors had swirled that Cerner Corp., a healthcare IT giant, was a prime target for an acquisition. The company throws off billions each year in profits and has decades of experience building the technological backbones of hospitals and clinics.
Some of the biggest tech companies in the world like Amazon, Google and Apple have expressed growing interest in the lucrative world of healthcare. All have been mentioned as potential buyers of Cerner. The hiring of former Google executive David Feinberg, who started in October as Cerner’s new chief executive, only fueled takeover speculation.
But it’s software giant Oracle that has come closest to making the buy. On Thursday evening, the Wall Street Journal reported that Oracle was in talks to purchase Cerner in a deal worth potentially $30 billion.
For years, rumors had swirled that Cerner Corp., a healthcare IT giant, was a prime target for an acquisition. The company throws off billions each year in profits and has decades of experience building the technological backbones of hospitals and clinics.
Some of the biggest tech companies in the world like Amazon, Google and Apple have expressed growing interest in the lucrative world of healthcare. All have been mentioned as potential buyers of Cerner. The hiring of former Google executive David Feinberg, who started in October as Cerner’s new chief executive, only fueled takeover speculation.
But it’s software giant Oracle that has come closest to making the buy. On Thursday evening, the Wall Street Journal reported that Oracle was in talks to purchase Cerner in a deal worth potentially $30 billion.
‘It’s a huge deal.’ What would the sale of Cerner mean to its hometown of Kansas City?
Posted from news.yahoo.com
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PO1 William "Chip" Nagel
MGySgt (Join to see) When Sprint started going Down Hill in the Tech Bubble Burst 2002, Cerner Started to Fill the Void. Now probably the 3rd Largest Employer in Kansas City Metro if Not Higher. I Still do Some Security Work for Them.
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PO1 William "Chip" Nagel
..."“I don’t think it’s surprising that Cerner’s the target of a takeover. That’s been speculated for quite a while,” said Nathan Mauck, an associate professor of finance at the University of Missouri-Kansas City. “A lot of folks speculated on different buyers. I don’t know that I heard Oracle’s name come up, but it makes some sense for Oracle to look at Cerner.”
Oracle is known for its aggressive acquisition strategy, having purchased dozens of companies in the last decade alone. But the purchase of Cerner would be the largest deal in that company’s history and one of the largest mergers of the year if completed.
“Obviously, it’s a huge deal,” Mauck said. “Cerner’s gotten so big it takes somebody really big to buy them.”
The terms of the reported deal are unknown at this time. And neither company has commented on the potential merger.
But mergers almost always mean job losses for the firms who are acquired. Companies look to realize savings by cutting duplicate jobs. Mauck pointed to Oracle’s 2004 purchase of PeopleSoft, a human resources software firm. Weeks after the $10.3 billion sale, Oracle slashed 5,000 jobs from the combined companies to realize an estimated $1 billion in merger savings.
..."“I don’t think it’s surprising that Cerner’s the target of a takeover. That’s been speculated for quite a while,” said Nathan Mauck, an associate professor of finance at the University of Missouri-Kansas City. “A lot of folks speculated on different buyers. I don’t know that I heard Oracle’s name come up, but it makes some sense for Oracle to look at Cerner.”
Oracle is known for its aggressive acquisition strategy, having purchased dozens of companies in the last decade alone. But the purchase of Cerner would be the largest deal in that company’s history and one of the largest mergers of the year if completed.
“Obviously, it’s a huge deal,” Mauck said. “Cerner’s gotten so big it takes somebody really big to buy them.”
The terms of the reported deal are unknown at this time. And neither company has commented on the potential merger.
But mergers almost always mean job losses for the firms who are acquired. Companies look to realize savings by cutting duplicate jobs. Mauck pointed to Oracle’s 2004 purchase of PeopleSoft, a human resources software firm. Weeks after the $10.3 billion sale, Oracle slashed 5,000 jobs from the combined companies to realize an estimated $1 billion in merger savings.
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Nice business share PO1 William "Chip" Nagel ... Cerner is one of Kansas City's largest companies, but still unknown since they are in the business of healthcare administration systems/records, etc. I've known people from previous jobs who got on with them.
I still remember reading in the KC Star back in the day that the CEO was interviewed & said he wanted the Cerner parking lots full of cars on the weekends. Yes, the pay was good, but the company did expect a lot of productivity from their employees for their pay.
I still remember reading in the KC Star back in the day that the CEO was interviewed & said he wanted the Cerner parking lots full of cars on the weekends. Yes, the pay was good, but the company did expect a lot of productivity from their employees for their pay.
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PO1 William "Chip" Nagel
LTC (Join to see) When I got Laid Off as a Senior Network Operations Specialist for Sprint I started doing Security Work, One of My "Clients" Off and On over the Years since has been Cerner. They definitely have a Different Perspective on Work though. I've been on Some Floors and while there are Desks there are Plenty of "Games" Too. Also Beer and Wine was Plentiful for Frequent Department, Division and Company Parties.
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