Friday, July 1

Oracle buys Cerner for 28,000 million dollars: strong commitment to the digital health business with the highest technological outlay of 2021

Oracle is going to buy the digital health company Cerner Corporation for just over 28,000 million dollars in which it is going to become in the largest transaction in the technology sector of 2021, as announced by the North American company in a note. Previously, the highest disbursement of the year was marked by Microsoft with the acquisition of Nuance, a company that is also related to the health technology business, for just under $ 20 billion.

Cerner Corporation’s primary business is a digital information systems software used in hospitals and health centers to manage various internal processes. According to 2018 data from the company itself, its digital tools would be present in more than 27,000 healthcare institutions around the world and they have about 29,000 employees.

Oracle has explained that Cerner will organize itself from the purchase as a business unit within the company and that it will be your main asset to expand in the digital health business. In addition, the Americans indicate that they will apply their technology to the tools they have just acquired to improve process management, software usability and focus their future on the cloud.

The main change that Oracle plans to introduce in Cener tools is the renewed user interface: “We will make Cerner systems much easier to learn and use by making Oracle’s hands-free digital voice assistant the primary interface for Cerner’s clinical systems. This will allow medical professionals to spend less time typing on computer keyboards and more time caring for patients, “said Mike Sicilia, executive vice president of Vertical Industries at Oracle.

The hands-free voice system for doctors is precisely one of the main businesses of Nuance, the technology for which Microsoft paid almost 20,000 million dollars in April of this year and which, until now, was the largest transaction in the technology sector in 2021. These strong bets of two of the largest companies in the sector evidence the growing interest of the major players in the industry in the digital health business.

Digital health, a booming business

As we already have in Engadget, giants like Microsoft itself, Amazon, Google, Apple, IBM, Telefónica or MasMovil are investing large amounts of money in this business, whose digitization they hope will bring them huge benefits. A group that has now been joined by another of the greats on the global technological scene, such as Oracle.

The Spanish public system spent more than 75,000 million euros on health in 2019, which represents 6% of the Gross Domestic Product (GDP) of our country, according to data from the Ministry of Health. Figures that, if we go to the United States, skyrocket to 3.8 trillion dollars in the same year, representing 17.7% of its GDP, according to US Administration data, and that’s not counting private spending. Much, much, much money that tech companies want to sink their teeth into.

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