Oracle's biggest move since its inception: the proposed acquisition of Cerner to enter the healthcare field

Financial Associated Press (Shanghai, editor Xiaoxiang) news, according to people familiar with the matter, Oracle Co. (Oracle Co.) Negotiations are underway to acquire Cerner, an electronic healthcare information company, a deal that could be worth as much as $30 billion or so, and will push the enterprise software giant further into healthcare.

People familiar with the matter said that if the talks did not break down or delay, a deal could be reached soon. If the deal closes, it will be the largest acquisition in Oracle's history. At present, Oracle's market value has exceeded $280 billion.

Based in Kansas City, Missouri-based Cerner, a leading provider of North American healthcare information technology (HCIT) solutions and technical support services, based on the company's software, hospitals and doctors can use to store and analyze medical records and other medical data. Cerner's current market capitalization is about $23 billion.

The deal is expected to value Cerner at around $30 billion, based on the usual acquisition premium, though it's unclear exact terms being discussed.

Oracle, which moved its headquarters to Austin, Texas, last year is a Silicon Valley veteran and one of the largest software vendors for other companies and organizations.

Oracle enters healthcare

In August, Cerner appointed David Feinberg as ceo of the company, and he officially took up his post in October. Feinberg, who previously held key positions at Oracle's rival Google, led Alphabet Inc.'s subsidiary into healthcare and helped forge partnerships with some of the largest hospital systems in the United States and collect and analyze data.

Oracle now has a strong presence in healthcare, providing technology designed to help health insurance companies, healthcare organizations, and public health systems parse data to improve efficiency and improve patient outcomes.

Oracle shares closed at $103.22 on Thursday, falling only slightly amid a general sell-off in technology stocks, after the company's stock price hit an all-time high a day earlier.

Last week, Oracle reported fiscal second-quarter results that exceeded expectations, with CEO Safra Catz reiterating expectations that the company's full-year revenue growth will accelerate from the same period last year. She also expects the company's operating margins to be the same or better than before the outbreak. The company also increased the authorization for share repurchases by $10 billion.

The acquisition of Cerner could help Oracle further transform into cloud computing. As Oracle has stepped up its focus on its cloud computing business, investors have developed a favorable interest in the company. Previously, Oracle has been slow to act in this area, but after lagging behind companies such as Amazon and Microsoft, Oracle has struggled to catch up in recent years. Both companies are currently worth well over $1 trillion, thanks in part to the booming cloud computing business.

If an acquisition deal is reached, Oracle's deal with Cerner will be one of the largest corporate acquisitions of the year, and thus is expected to end one of the busiest M&A years of all time in 2021. U.S. M&A activity grew 78 percent to $2.45 trillion this year, according to Dealogic, as soaring stock prices and loose funding have emboldened companies to close deals, and special purpose acquisition companies (SPAC) are being formed at an alarming rate.