Oracle joins Microsoft and spends a lot of money to dominate the healthcare space – TechCrunch

Enterprise software company Suddenly I have a firm focus on health care. If you need proof, see how both Oracle and Microsoft backed up their money-laden trucks to buy a health tech company this year.

Currently, I’m summarizing the top 10 M & A deals this year, but the top two deals are today. $ 28.3 billion agreement Oracle buys Cerner and Microsoft’s $ 19.7 billion transaction Purchase Nuance Communications in April. That’s just under $ 50 billion for the two health companies.

Other majors go around the health market.Amazon has been quiet about it, but last year it too I’ve seen healthcare, We focus on profitable areas in partnerships, employment and programs. Google’s approach wasn’t as certain as David Feinberg, a leader in healthcare. Jumped to Cerner in October , The company that Oracle acquired this morning.

Healthcare is just a huge market, so there is a lot of interest. In its announcement, Oracle quoted a popular figure that the US healthcare business alone is worth $ 3.8 trillion annually. Extrapolating that number to the whole world, it’s no wonder that big companies are willing to make huge bets to get some of it.

But beyond the obvious market potential, what is Oracle getting for that money? We talked to industry experts and asked for their opinions.

Let’s start with a few numbers. In the latest revenue report, Cerner generated $ 1.47 billion in revenue in the third quarter. This is a modest growth of 7% year-on-year. As a result, the company is not growing exponentially and is a good target for acquisitions. Given Cerner’s execution rate of $ 6 billion, this transaction is just under five times the bottom line. It’s like the middle of a modern road. Oracle joins Microsoft and spends a lot of money to dominate the healthcare space – TechCrunch

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