Key Stats
Founded: 1979 in Kansas City, Missouri
Peak Revenue: $5.76 billion (2021)
Employees (Pre-Acquisition): 26,000+ globally
Customers: 27,000+ healthcare providers in 35+ countries
Acquired by Oracle: June 8, 2022 for $28.3 billion
Cerner Corporation supplied healthcare information technology solutions to hospitals, clinics, and healthcare organizations worldwide. The company designed and developed software on the unified Cerner Millennium architecture, a person-centric computing framework combining clinical, financial, and management information systems.
Healthcare providers used Cerner solutions to access electronic health records at the point of care. The platform organized and delivered information to physicians, nurses, laboratory technicians, pharmacists, and administrative professionals. Cerner also offered services including implementation, training, remote hosting, revenue cycle management, and healthcare data analysis.
The company operated through domestic and global segments across more than 30 countries including Australia, Canada, England, Germany, Saudi Arabia, and the United Arab Emirates. Oracle Corporation acquired Cerner in June 2022, forming Oracle Health to advance healthcare delivery through cloud technology and AI integration.
Cerner History
The Cerner story began in 1979 when three Arthur Andersen consultants met at a picnic table in Loose Park, Kansas City. Neal Patterson, Cliff Illig, and Paul Gorup studied for their CPA exams while brainstorming business ideas. They saw software’s potential to transform industries and founded PGI & Associates that fall.
A contract to fix a pathology practice billing system in Kansas City sparked their healthcare focus. This project led to PathNet, their first commercial laboratory information system. The company renamed itself Cerner in 1984, deriving the name from the Latin word “cernere” meaning “to discern” or “to separate.”
Cerner went public in 1986 and steadily expanded its client base throughout the late 1980s. The company grew from 70 sites in 1987 to 250 sites by 1990. During this period, Cerner developed the Health Network Architecture, an integrated IT system designed to automate healthcare processes.
The 1997 introduction of Cerner Millennium marked a turning point. This upgrade incorporated all software offerings into one unified architecture, driving significant growth. Revenue increased from $245.1 million in 1997 to $1.1 billion by 2005. Ten years after launch, Millennium operated in more than 1,200 facilities worldwide.
Cerner Co-founders
Neal L. Patterson
Chairman, CEO, and President. Grew up on a family farm in Oklahoma and earned degrees from Oklahoma State University. Led Cerner from founding until his death in July 2017. Also co-owned Sporting Kansas City soccer team.
Clifford W. Illig
Vice Chairman and co-founder. Served on Cerner board for nearly 40 years before retiring in 2019. Partnered with Patterson to purchase Sporting Kansas City in 2006, building a model MLS franchise.
Paul N. Gorup
Co-founder who later pursued other ventures. Left Cerner for a time to start Broadcast Data Systems, which became an industry leader in commercial electronic media monitoring. Retired from Cerner in 2015.
Cerner Revenue
Cerner Corporation demonstrated consistent revenue growth throughout its history as an independent company. The healthcare IT provider reached peak annual revenue of $5.76 billion in 2021, the final full year before Oracle completed its acquisition.
Revenue growth accelerated after the 2015 Siemens Health Services acquisition, which added $650 million in combined annual R&D investment. The company maintained steady performance even during market challenges, though 2020 showed a slight decline due to pandemic-related disruptions in healthcare IT spending.
Cerner Marketcap
Cerner Corporation’s market capitalization grew from approximately $13.6 billion in 2012 to nearly $28 billion at the time of its Oracle acquisition. The company experienced steady appreciation as healthcare IT adoption increased across hospitals and health systems worldwide.
The stock reached its peak valuation in 2021 following Oracle’s acquisition announcement. The final market cap stood at approximately $27.9 billion when trading concluded in 2022, reflecting the $95 per share acquisition price.
Cerner Acquisitions
Cerner Corporation pursued strategic acquisitions to expand its healthcare IT capabilities and market reach. The company’s acquisition strategy focused on complementary technologies and services that enhanced its core electronic health record platform.
In early 2010, Cerner acquired IMC Health Care, Inc., a provider of employer-sponsored on-site health centers. This acquisition expanded Cerner’s employer health initiatives including workplace clinics, pharmacies, and wellness programs. IMC Health Care served 15 employer clients and operated 23 employee health centers across the United States at the time of purchase.
The transformative acquisition came in February 2015 when Cerner completed its $1.3 billion purchase of Siemens Health Services. This deal made Cerner the top revenue-earning company among U.S. EHR vendors. The acquisition brought 21,000 associates across more than 30 countries and 18,000 client facilities into the Cerner family.
The Siemens deal also established a strategic alliance pairing Cerner’s health IT expertise with Siemens AG’s device and imaging capabilities. Both companies invested up to $50 million during an initial three-year term to advance EHR interoperability with medical devices. Cerner committed to supporting the Soarian platform for at least a decade following the acquisition.
Cerner itself became an acquisition target in December 2021 when Oracle Corporation announced an agreement to purchase the company for $28.3 billion. This all-cash tender offer of $95 per share represented Oracle’s largest acquisition ever. The deal closed on June 8, 2022, with Cerner becoming Oracle Health.
Cerner Competitors
The electronic health record market features several major vendors competing for hospital and healthcare provider contracts. Cerner, now operating as Oracle Health, held the second-largest market share in the U.S. acute care hospital segment before and after its acquisition by Oracle.
Competition in the EHR market intensified as healthcare organizations sought integrated solutions for clinical documentation, revenue cycle management, and population health analytics. Each vendor targets different segments based on organization size, specialty focus, and budget requirements.
| Company | Headquarters | Primary Market |
|---|---|---|
| Epic Systems | Verona, Wisconsin | Large hospitals and academic medical centers |
| MEDITECH | Westwood, Massachusetts | Small to medium-sized hospitals |
| Veradigm (formerly Allscripts) | Chicago, Illinois | Physician practices and ambulatory care |
| athenahealth | Watertown, Massachusetts | Medical groups and small practices |
| NextGen Healthcare | Irvine, California | Ambulatory care and specialty practices |
| eClinicalWorks | Westborough, Massachusetts | Ambulatory practices |
| CPSI | Mobile, Alabama | Community hospitals and rural healthcare |
| Netsmart Technologies | Overland Park, Kansas | Behavioral health and human services |
| UnitedHealth Group (Optum) | Minnetonka, Minnesota | Health services and technology |
| IBM Watson Health | Armonk, New York | Healthcare analytics and imaging |
FAQs
Who founded Cerner Corporation?
Neal Patterson, Cliff Illig, and Paul Gorup founded Cerner in 1979 as PGI & Associates. They met while working at Arthur Andersen and renamed the company Cerner in 1984.
When did Oracle acquire Cerner?
Oracle completed its $28.3 billion acquisition of Cerner on June 8, 2022. The deal was announced in December 2021 at $95 per share in an all-cash tender offer.
What is Cerner Millennium?
Cerner Millennium is the company’s flagship electronic health record platform. Launched in 1997, it unified all Cerner software offerings into one integrated architecture for healthcare organizations.
Where was Cerner headquarters located?
Cerner was headquartered in North Kansas City, Missouri. The company maintained its principal offices at 2800 Rock Creek Parkway throughout its history as an independent company.
What happened to Cerner after the Oracle acquisition?
Cerner became Oracle Health after the 2022 acquisition. Oracle integrated Cerner’s clinical capabilities with its enterprise platform, analytics, and cloud infrastructure to advance healthcare technology solutions.
