Bannister Mall/Cerner

[earthling]

fewer people having kids, more might stay in dowtown til retirement, but if WFA is the future does it really matter?

^Depends on what % of companies embrace WFA /WFH hybrid long term. Either way focusing on residential for downtown would probably have more long term impact as many downtown residents will be WFH long term, the only unknown is what %. The more residents built up, organic job growth will come. BTW, we should start thinking of RCP corridor as 'downtown' from an economic perspective as when free fare streetcar is tieing it all together, it will become a broad blur of a larger more contiguous economic center.

Will be interesting to see if Oracle invests further into Cerner campus. Given the MegaTIF they might especially if KCMO/state gives extra incentives to build more data centers there. We should be ready to pitch that immediately if acquisition is approved. The City needs to understand that Oracle jobs are transient, their data centers are not.

Oracle's cloud services are growing rapidly. KC's massive play into DCs can feed into it...
https://www.oracle.com/news/announcemen ... 021-10-11/

[ericwyner]

Boomers may be old fashioned in your eyes but they are part of a generation that was the original anti establishment and created companies that are the starting points for many new companies. KCMO could use more visionary younger leaders that are focused on big picture development.

not every boomer was at Woodstock, many dope smoking Vietnam draft dodgers because major figures in RW politics, they became the establishment as they got old and previous establishment died or retired

https://www.youtube.com/watch?v=yfXmL5E ... orgeBuford

[GRID]

And not every twenty something wants to live in a downtown apartment.

KC's lack any real corporate focus on downtown is much deeper than people's ages.

[alejandro46]

https://www.prnewswire.com/news-release ... 48252.html

Basically, Cerner to operate as a division of Oracle.

$95 per share price. $28bln total deal size.

"Continued investment and presence in KCMO."

Lucas tweeted he has a call with Cerner leadership today to discuss ways to keep Cerner/Oracle presence in KC. I wonder if we can get some direct flights to Larry's island in Hawaii. lol

AUSTIN, Texas and KANSAS CITY, Mo., Dec. 20, 2021 /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) and Cerner Corporation today jointly announced an agreement for Oracle to acquire Cerner through an all-cash tender offer for $95.00 per share, or approximately $28.3 billion in equity value. Cerner is a leading provider of digital information systems used within hospitals and health systems to enable medical professionals to deliver better healthcare to individual patients and communities.

"Working together, Cerner and Oracle have the capacity to transform healthcare delivery by providing medical professionals with better information—enabling them to make better treatment decisions resulting in better patient outcomes," said Larry Ellison, Chairman and Chief Technology Officer, Oracle. "With this acquisition, Oracle's corporate mission expands to assume the responsibility to provide our overworked medical professionals with a new generation of easier-to-use digital tools that enable access to information via a hands-free voice interface to secure cloud applications. This new generation of medical information systems promises to lower the administrative workload burdening our medical professionals, improve patient privacy and outcomes, and lower overall healthcare costs."

"We expect this acquisition to be immediately accretive to Oracle's earnings on a non-GAAP basis in the first full fiscal year after closing—and contribute substantially more to earnings in the second fiscal year and thereafter," said Safra Catz, Chief Executive Officer, Oracle. "Healthcare is the largest and most important vertical market in the world—$3.8 trillion last year in the United States alone. Oracle's revenue growth rate has already been increasing this year—Cerner will be a huge additional revenue growth engine for years to come as we expand its business into many more countries throughout the world. That's exactly the growth strategy we adopted when we bought NetSuite—except the Cerner revenue opportunity is even larger."

"Cerner has been a leader in helping digitize medical care and now it's time to realize the real promise of that work with the care delivery tools that get information to the right caregivers at the right time," said David Feinberg, President and Chief Executive Officer, Cerner. "Joining Oracle as a dedicated Industry Business Unit provides an unprecedented opportunity to accelerate our work modernizing electronic health records (EHR), improving the caregiver experience, and enabling more connected, high-quality and efficient patient care. We are also very excited that Oracle is committed to maintaining and growing our community presence, including in the Kansas City area."

"Oracle's Autonomous Database, low-code development tools, and Voice Digital Assistant user interface enables us to rapidly modernize Cerner's systems and move them to our Gen2 Cloud," said Mike Sicilia, Executive Vice President, Vertical Industries, Oracle. "This can be done very quickly because Cerner's largest business and most important clinical system already runs on the Oracle Database. No change required there. What will change is the user interface. We will make Cerner's systems much easier to learn and use by making Oracle's hands-free Voice Digital Assistant the primary interface to Cerner's clinical systems. This will allow medical professionals to spend less time typing on computer keyboards and more time caring for patients."

Highlights

All-cash tender offer for $95.00 per share, or approximately $28.3 billion, that is immediately accretive to Oracle's earnings.
Accretive to Oracle's earnings on a non-GAAP basis in the first full fiscal year after closing and will contribute substantially more to earnings in the second fiscal year and thereafter.
Cerner will be a huge additional revenue growth engine for Oracle for years to come as Oracle expands Cerner's business into many more countries throughout the world.
Transaction is expected to close in calendar year 2022. The closing of the transaction is subject to receiving certain regulatory approvals and satisfying other closing conditions including Cerner stockholders tendering a majority of Cerner's outstanding shares in the tender offer.
Oracle anticipates retaining an investment grade credit rating.
Oracle brings significant experience helping power the largest industries.
Oracle provides industry solutions that run the core operations for customers in the world's largest industries.
Industries covered by Oracle today include, among others, Financial Services, Telecom, Utilities, Pharmaceuticals, Hospitality, Retail, Food & Beverage, Construction & Engineering, Manufacturing and Government.
Oracle also brings best in class cloud infrastructure to drive digital modernization, substantially lowering the total cost of IT in these critical industry sectors.
Cerner is a leader in the healthcare IT industry and a complementary business to Oracle.
Cerner is a leading provider of digital information systems used within hospitals to enable medical professionals to deliver better healthcare to individual patients and communities.
Cerner has over four decades of experience modernizing electronic health records, improving the caregiver experience, and streamlining and automating clinical and administrative workflows.
Together, Oracle and Cerner will protect customer investments and transform healthcare.
According to a recent study by the Mayo Clinic1, physicians spend 1 to 2 hours on EHRs and desk work for every hour spent in face-to-face contact with patients, as well as an additional 1 to 2 hours of personal time on EHR related activities.
Working together, Cerner and Oracle have the capacity to address these issues and transform healthcare delivery by providing medical professionals with better information—enabling them to make better treatment decisions resulting in better patient outcomes.
Customer investments in Cerner are also protected with this combination and will grow in value over time as more modern and connected technologies are made available.
With Oracle's resources, infrastructure and cloud capabilities, Cerner will accelerate the pace of product and technology development to enable more connected, high-quality, and efficient care.
Oracle's focus on usability and voice enabled user interfaces will dramatically reduce the amount of time that medical providers spend dealing with systems and increase the time they spend directly caring for patients.
Significant opportunity to help customers use Oracle's modern technologies such as cloud, AI, ML and other innovations to make care more accessible, secure, efficient and effective for patients and caregivers.
Cerner systems running on the Oracle Gen2 Cloud will be available 24 by 7 by 365. Goal is to deliver zero unplanned downtime in the medical environment.
With Cerner systems running on the Oracle database, only specifically authorized medical professionals can access patient data. IT professionals running the systems are unable to look at patient data.
Oracle and Cerner are committed to continued and enhanced stewardship of health information, which will be bolstered by Oracle's global operational infrastructure.
Cerner will be organized as a dedicated Industry Business Unit within Oracle.
Cerner will be Oracle's anchor asset to expand into healthcare and together we will improve medical care for individuals and communities around the world.
Oracle intends to maintain and grow Cerner's community presence, including in the Kansas City area, while utilizing Oracle's global footprint to reach new geographies faster.
More information about this announcement is available at the Oracle and Cerner corporate websites.

References

Melnick, E. R; Dyrbye, L.N., Sinsky, C. A. et al.
The Association Between Perceived Electronic Health Record Usability and Professional Burnout Among US Physicians.
Mayo Clinic Proceedings Vol. 95, Issue 3, P476-487 March 1, 2020
About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.

About Cerner
Cerner's health technologies connect people and information systems at thousands of contracted provider facilities worldwide dedicated to creating smarter and better care for individuals and communities. Recognized globally for innovation, Cerner assists clinicians in making care decisions and assists organizations in managing the health of their populations. The company also offers a connected clinical and financial ecosystem to help manage day-to-day revenue functions, as well as a wide range of services to support clinical, financial and operational needs, focused on people. For more information, visit Cerner.com.

Trademarks
Oracle, Java, and MySQL are registered trademarks of Oracle Corporation.

Cautionary Statement Regarding Forward-Looking Statements

This document contains certain forward-looking statements about Oracle and Cerner, including statements that involve risks and uncertainties concerning Oracle's proposed acquisition of Cerner, anticipated customer benefits and general business outlook. When used in this document, the words "can", "will", "expect", "opportunity", "promises", "goal" and similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. Any such statement may be influenced by a variety of factors, many of which are beyond the control of Oracle or Cerner, that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this document due to a number of risks and uncertainties. Potential risks and uncertainties include, among others, the possibilities that the transaction will not close or that the closing may be delayed, that the anticipated synergies may not be achieved after closing, and that the combined operations may not be successfully integrated in a timely manner, if at all; general economic conditions in regions in which either company does business; the impact of the COVID-19 pandemic on how Oracle, Cerner and their respective customers are operating their businesses and the duration and extent to which the pandemic will impact Oracle's or Cerner's future results of operations; and the possibility that Oracle or Cerner may be adversely affected by other economic, business, and/or competitive factors. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of Oracle or Cerner.

In addition, please refer to the documents that Oracle and Cerner, respectively, file with the U.S. Securities and Exchange Commission (the "SEC") on Forms 10-K, 10-Q and 8-K. These filings identify and address other important factors that could cause Oracle's and Cerner's respective operational and other results to differ materially from those contained in the forward-looking statements set forth in this document. You are cautioned to not place undue reliance on forward-looking statements, which speak only as of the date of this document. Except as required by law, neither Oracle nor Cerner is under any duty to update any of the information in this document.

[AlkaliAxel]

I actually feel alot more optimistic after reading that, and seeing the cities response to Oracle buyout makes me feel better as well.

[earthling]

Trust actions over words. There are reasons to be optimistic and there are reasons to be skeptical.

[DaveKCMO]

Trust actions over words. There are reasons to be optimistic and there are reasons to be skeptical.

Absolutely. So many examples to choose from where this kind of deal did not turn out to be good for KC. One reason to be optimistic is a potential retrofit of Cerner's many urban planning mistakes.

[AlkaliAxel]

Trust actions over words. There are reasons to be optimistic and there are reasons to be skeptical.

Absolutely. So many examples to choose from where this kind of deal did not turn out to be good for KC. One reason to be optimistic is a potential retrofit of Cerner's many urban planning mistakes.

I just think it can’t get any worse than if we had the current Cerner leadership in charge, and atleast the new people might institute some better changes. We’re basically playing on house money with this whole situation.

[earthling]

KCBJ...

Since February 2018, Cerner has completed four office buildings totaling 1.63 million square feet, plus a Taco Bell, at the 290-acre campus off Bannister Road. Beyond a few additional retail users, the company last week told the Tax Increment Financing Commission of Kansas City that completion dates for remaining campus components, including six more office buildings, are unknown.

Should Cerner fail to activate project areas for 11 outstanding Innovations phases by October 10, 2023, or within 10 years of its original TIF plan approval, it would lose access to incentives valued at $1.07 billion.

However, depending on its plans for a local presence, Oracle could tap part or all of those public subsidies.

Cerner's incentive rights and obligations under its 2016 redevelopment agreement with the TIF Commission can transfer to a Fortune 1000 acquirer. That new buyer must first demonstrate to commissioners' satisfaction that it has the capacity to create the balance of promised campus jobs and agree in writing "to diligently pursue producing such remaining jobs," the agreement says.

The Innovations Campus' two outstanding data center phases, on top of significant data center investment planned elsewhere in Kansas City, also could prove enticing for Oracle. The company's Oracle Cloud arm boasts a data center network for its range of cloud infrastructure and platform services in 36 regions, with more on the way.

https://www.bizjournals.com/kansascity/ ... ffice.html

[GRID]

That billion dollars in incentives is really all KC has to offer. Despite the new terminal, KC has waited too long with KCI and let the airport drop down to a third tier airport. Nashville and Austin are booming tech hubs that KC just can't compete with. Facebook, Google, Amazon etc all building in their downtowns or very near their downtowns.

Despite the incentive package at the SKC campus, I'm just not sure Oracle will be all that interested in a 1/4 built 1980's office park far from a city center, university and other tech companies.

I honestly feel like this will be similar to Sprint, DST etc where they will stick around for a few years, but slowly go away.

I really hope I'm wrong. This will really really hurt KC.

[AlkaliAxel]

Could Oracle take those last 6 planned office buildings and build them in the core before they get built in a suburb?

[AlkaliAxel]

That billion dollars in incentives is really all KC has to offer.

Apparently that’s not all they have to offer though, the article literally says the data centers are enticing too.

[dukuboy1]

Boomers may be old fashioned in your eyes but they are part of a generation that was the original anti establishment and created companies that are the starting points for many new companies. KCMO could use more visionary younger leaders that are focused on big picture development.

not every boomer was at Woodstock, many dope smoking Vietnam draft dodgers because major figures in RW politics, they became the establishment as they got old and previous establishment died or retired

https://www.youtube.com/watch?v=yfXmL5E ... orgeBuford

True, just like every generation they are defined by their diversity of culture, social norms, and difference. Baby Boomers are no different. But as much as you want to focus on the "other side" you do need to give credit to those "dope smoking, draft dodgers" as you so eloquently put it that started major industries and businesses that would become giants. I get your point but your approach is tired, and trite. There were a lot of guys who went to Vietnam and it changed them to not want anyone to experience the horrors of war. They still loved their country and would do anything to protect it when duty calls. But even those "dope smokers" started companies and then enjoyed the good life and became establishment or for lack of a better those who were fighting "the man" became the man

Regardless this deal is done and it appears to be some KC Business leadership around it looking out for the best interest of KC as they possibly can. As other people have posted, actions speak louder than words. So far the words seem right, and even hopefully for what the future may hold. I guess being in the show me state, we'll have to wait and see. I'm cautiously optimistic of the deal and hopes Oracle will get a chance to see how KC can shine in doing business. Plus this might give us some more notice with the other big boys at the table to re-think KC and or revisit plans they once had. This may help speed up development and get things done across the town. Time will tell for sure. Can't say I'm over the moon excited for the prospects of KC, but I'm also not doom and gloom. Once a chess piece this big is move it has a ripple effect on all the other pieces. There are many more moves to come, some people didn't see and will be good and in some cases bad.

[GRID]

Could Oracle take those last 6 planned office buildings and build them in the core before they get built in a suburb?

Would be nice haha. That campus is never going to be built out as planned.

I think you have two scenarios if Oracle stays in KC.

They build out the SKC campus with a totally different more mixed use design and incorporate the existing buildings into that development

They abandon both the NKC and SKC campus and build in the city if they can get the same incentives.

However, what is more likely to happen is they will just use the office space Cerner already has while they slowly move away from KC.

I really don't think the data centers are going to play a huge role. Those are popping up all over the Midwest in cities smaller than KC. That doesn't mean Oracle and other companies necessarily want to be near them.

[AlkaliAxel]

I really don't think the data centers are going to play a huge role. Those are popping up all over the Midwest in cities smaller than KC. That doesn't mean Oracle and other companies necessarily want to be near them.

But no other city with the data centers has the $1.07 bil incentive package too

Oracle might see it as advantageous to be the first to capitalize on those centers we have here and be the power over it for themselves (in a pretty big metro), while using the incentives.

But again, you have to think of it like this- Cerner was already gonna collapse anyway. That was a given- the collapse had begun. If Oracle really does ship away the jobs, then it's no different result than what was already going to happen with Cerner anyway. But..if Oracle decides to invest, then we stand to gain a good amount.

That's why this is the same thing as playing on house money. Either we get what was already coming and nothing changes, or we win.

[dukuboy1]

is that data center they are building up North going to be like the 3rd largest in the world? Maybe not at phase 1, but over time through the set plans they have? I'm sure other projects would come online during this time, but I just can't think that something this large is just going to be a "ho-hum" project that will be no different than other places in the midwest. Maybe I'm wrong but it feels like you are down playing the impact a bit of that project. And for the record I'm not trying to over hype it. I just think it is an opportunity to be a much bigger deal for KC than we realize right now.

[earthling]

At 600MW the GPTP site would be top 5 DC complexes in world but will take time to build out completely so other sites may grow by then. It would also easily be in top 5 of US markets depending on how categorized, not just single sites but again those will grow too. Either way It's a massive project if built out to completion in addition to whatever Google is planning at Hunt site. It certainly would create a large DC ecosystem for KC beyond the site itself, involving vendors who support DCs.

Oracle may take note of that, or maybe they won't care. In the 10 year big picture, Oracle jobs will be wherever and it's probably up to employees where they want to live and some may want KC but the question is will it be more than Cerner currently employees in KC. I'd be surprised unless Oracle takes some kind of specific action to invest in KC. It's plausible that Oracle bases all of its health divisions out of KC management wise but not necessarily most health related employees, more than Cerner currently has in KC anyway.

[GRID]

I get how big they are. I just don't see how they make a company want to be close to them. I don't think these companies going to Austin, Nashville etc have anything to do with data centers. Pretty sure they are very independent of where the actual tech jobs are.

The incentive package KC might offer and the local specific health care jobs will probably carry more weight. However, it seems like these companies want to be in specific markets despite what incentives can be offered. I mean, Amazon will pass over KC and far more incentives and go to DC where they not only offered less incentives, but the cost of doing business is much higher.

KC needs to figure out what places like Austin and Nashville are offering that makes them able to compete with the east and west coasts. It's not just COL and it won't be to be near data centers.

I think building up KCI will be a huge help. I just saw where Denver is about to do yet another major expansion to their airport. KCI seems to have turned into a "Tulsa" type airport over the past ten years. Hopefully the new terminal will change that.

It would be nice if Oracle does somehow keep a major presence in KC. Again, these companies feed off each other and the talent they collectively bring to a market. If KC loses much of the Cerner tech people, it will be a major or even fatal blow to KC ever being a major tech hub outside these massive warehouse server farms which have very few employees and are more about their remote and central locations than being near the companies that use them.

[AlkaliAxel]

I just want to throw this out here, but Nashville hasn’t been growing because of tech jobs. That’s Austin. I’ve seen that said like 3 times now and I had to say something. It’s industry growing it is health care services.

[earthling]

Oracle DCs in addition to 13K now "Oracle KC employees" would help 'broaden' the Oracle footprint in KC investment wise that could extend further. Given KC is building up the huge DC ecosystem, that's the natural first place to start pursuing broadening Oracle presence then go from there. Would be surprised if KC can keep 13K Oracle/Cerner employees if not established as an Oracle hub. If Cerner campus doesn't announce a new building within a year even if just a DC, probably will be the start of the decline.

The thing to watch over the next year+ will be Oracle Health job postings and where they are located. And even if most in KC, how many qualify for virtual/remote.

Another key sign will be if Oracle gives up on the Bannister campus incentives and lets it expire.