WSJ: Oracle in Talks to Buy Cerner

Great news! Yesterday evening, the Wall Street Journal reported that Oracle (ORCL) is in talks to buy Cerner (CERN) for “a deal that could be worth around $30 billion.”

A $30 billion valuation would give Cerner a share price of $102. The stock closed Thursday at $79.49 per share. This is very good news for us and our Buy List.

An agreement could be finalized soon, some of the people said, assuming the talks don’t fall apart or drag out. Should a deal come together, it would rank as the biggest ever for Oracle, which has a market value of more than $280 billion.

Kansas City, Mo.-based Cerner designs software that hospitals and doctors use to store and analyze medical records and other healthcare data. It has a market value of around $23 billion. With a typical takeover premium, a deal would be expected to value the company at something like $30 billion, though exact terms being discussed couldn’t be learned.

Neither company has made an announcement. I expect to hear something official next week.

Shares of Cerner jumped nearly 13% today to close at $89.77 per share. At one point, Cerner traded as high as $92.34 per share today.

It took us a while but we finally hit it big with Cerner.

Posted by on December 17th, 2021 at 4:05 pm


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