M&A · Tech · Services-Computer Integrated Systems Design
Oracle Corp to acquire Cerner Corp
Announced Dec 20, 2021 · Closed Jun 8, 2022
Deal value$28.30BEV $29.68B
Premium—To unaffected price
EV / Adj. EBITDA17.4x5.2x EV / Revenue
ConsiderationAll cash$95.00 per share
Transaction
- Acquirer
- Oracle Corp (ORCL)
- Target
- Cerner Corp
- Buyer type
- Strategic
- Offer price per share
- $95.00
- Enterprise value
- $29.68B
- Status
- Closed Jun 8, 2022
Deal protections
- Break fee (target pays)
- $950M · 3.4%
- Reverse fee (buyer pays)
- —
- Go-shop
- 45-day go-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Not disclosed
- To the target
- Goldman Sachs, Centerview
Sector context · Tech
- Comparable deals
- 50 in the prior 24 months
- Premium
- Sector median 30.8%
- EV / Adj. EBITDA
- 17.4x vs. 17.7x sector median
- Break fee
- 3.4% vs. 3.0% sector median
Timeline
- AnnouncedDec 20, 2021
- Tender offerJan 19, 2022
- ClosedJun 8, 2022
Valuation · fairness opinions
Discounted cash flowGoldman Sachs$75.00$115.00
Future share priceGoldman Sachs$75.00$114.00
Precedent transactionsGoldman Sachs$86.00$129.00
52-week trading rangeGoldman Sachs$93.00$109.00
52-week trading rangeGoldman Sachs$77.00$105.00
Trading comparablesCenterview$64.00$99.00
Trading comparablesCenterview$87.00$113.00
Discounted cash flowCenterview$76.00$116.00
Offer $95.00
Implied value per Cerner Corp share by analysis, from Goldman Sachs and Centerview · DCF discount rate 6.25%–7.75%.