Cerner Corporation (NASDAQ: CERN), a global health care technology
company, today announced an agreement to acquire Kantar Health, a
division of Kantar Group, for $375 million in cash, subject to
adjustment. Kantar Health is a leading data, analytics and
real-world evidence and commercial research consultancy serving the
life science industry. With this acquisition, Cerner plans to
harness data to improve the safety, efficiency and efficacy of
clinical research across life sciences, pharmaceuticals and health
care at large. This acquisition is expected to allow Cerner’s
Learning Health Network SM client consortium to more directly
engage with life sciences for funded research studies.
“Cerner launched the Learning Health Network with our provider
clients to advance a shared vision: treat global diseases more
effectively through an acceleration of clinical research,” said
Donald Trigg, president, Cerner. “Kantar Health has incredible
health economics and medical affairs expertise, differentiated
real-world data assets and strong relationships with the world’s
leading life science companies. It offers us an amazing opportunity
to drive cross-industry collaboration that can change health
outcomes around the world.”
With a mission of revolutionizing clinical research, the Cerner
Learning Health Network offers health systems complimentary access
to a network of bi-directional, de-identified data resources. This
access helps advance research efforts and provides opportunities to
generate revenue with funded research studies from life science
companies. Kantar Health’s proprietary syndicated data products
including CancerMPact®, Claritis, National Health & Wellness
Survey and its broader oncology, rare disease and multi-therapeutic
expertise are used today by all of the top 20 life science
companies to further their real-world evidence, commercial and
clinical research efforts.
The combination of Cerner and Kantar Health is expected to
enable a two-sided collaboration between providers and the
pharmaceutical industry, where researchers can generate insights
and use differentiated real-world data assets and expertise to
address the most complex clinical research questions.
“At Kantar Health we’re proud of our heritage and reputation as
consultants to the world’s leading life sciences manufacturers. We
are excited about this next chapter, where our real-world evidence
and commercial data assets will be powered by Cerner,” said
Lynnette Cooke, CEO, Kantar Health. “There is a strong cultural fit
between the two organizations, grounded by our shared vision to
increase access and affordability for patients around the world. We
expect the combination of our expertise and assets with Cerner’s
technology and unique insights into patients will enable a
step-change in the way healthcare is developed and delivered,
resulting in improved patient outcomes.”
The acquisition is anticipated to close in
the first half of 2021, subject to regulatory approval,
employee consultations and other conditions, and is
not expected to have a material impact on Cerner’s
earnings in 2021.
Harris Williams acted as exclusive financial advisor; Weil,
Gotshal & Manges LLP acted as legal advisor; and EY acted
as accounting, tax, operational, technology and separation advisors
to Kantar Health.
Latham & Watkins LLP acted as legal advisor; EY provided
financial, tax and HR due diligence; and its EY-Parthenon
consulting practice acted as strategic, commercial and operational
advisors to Cerner.
About CernerCerner’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 an integrated clinical and
financial system 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, The Cerner Blog or connect on
Facebook, Instagram, LinkedIn, Twitter or The
Cerner Podcast. Nasdaq: CERN. Health care is too
important to stay the same.
About Kantar Kantar is the world’s leading
evidence-based insights and consulting company. We have a complete,
unique and rounded understanding of how people think, feel and act;
globally and locally in over 90 markets. By combining the deep
expertise of our people, our data resources and benchmarks, our
innovative analytics and technology, we help our clients understand
people and inspire growth.
Contacts:
Cerner Investor Contact: Allan
Kells, (816) 201-2445, akells@cerner.comCerner Media
Contact: Stephanie Greenwood,
stephanie.greenwood@cerner.comKantar Media
Contact: Ed Gemmell, ed.gemmell@Kantar.com
All statements in this press release that do not
directly and exclusively relate to historical facts constitute
forward-looking statements. These forward-looking statements are
based on the current beliefs, expectations and assumptions of
Cerner's management with respect to future events and are subject
to a number of significant risks and uncertainties. It is important
to note that Cerner's performance, and actual results, financial
condition or business could differ materially from those expressed
in such forward-looking statements. The words “expected”, “expect”,
“plans”, “anticipated”, “opportunity”, “opportunities”, or the
negative of these words, variations thereof or similar expressions
are intended to identify such forward-looking statements. For
example, our forward-looking statements include statements
regarding the future benefits or synergies of the transaction and
closing the transaction in the anticipated timeframe or at all.
Factors that could cause or contribute to such differences include,
but are not limited to: risks inherent with business acquisitions
and integrations, such as difficulties and operational and
financial risks associated with integrating Cerner and the acquired
business generally and during the COVID-19 pandemic; the occurrence
of any event, change or other circumstances that could give rise to
the termination of the transaction agreement in part or in full;
the risk that the necessary regulatory, foreign direct investment,
or merger control approvals may not be obtained in a timely manner
or may be obtained subject to conditions that are not anticipated;
the risk of uncertainty as to timing of the consummation of the
acquisition; risks that any of the closing conditions to the
proposed transaction may not be satisfied or may not be satisfied
in a timely manner; risks related to disruption of management time
from ongoing business operations due to the proposed transaction;
failure to realize the synergies, market opportunities and other
benefits expected from the proposed transaction; risk that the
assets and business acquired may not continue to be commercially
successful; the effect of the announcement of the proposed
transaction and the transaction itself on the ability of Cerner and
Kantar Health to retain customers and key personnel and to maintain
relationships with key suppliers of the acquired business;
unexpected costs, charges or expenses resulting from the
transaction; litigation or claims relating to the transaction or
the acquired assets and business; and the extent to which the
COVID-19 pandemic and measures taken in response thereto could
adversely affect the business to be acquired and the assumptions
management has used in its evaluation of the transaction.
Additional discussion of these and other risks, uncertainties and
factors affecting Cerner's business is contained in Cerner's
filings with the Securities and Exchange Commission. The reader
should not place undue reliance on forward-looking statements,
since the statements speak only as of the date that they are made.
Except as required by law, Cerner undertakes no obligation to
update or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events, or changes in
our business, results of operations or financial condition over
time.
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