Cerner Starboard Agreement

According to the agreement with Starboard, the former leaders of Hill-Rom are John Greisch. Ex-MedAssets Inc. Chief R. Halsey Wise; former President of AliphCom Inc. Melinda Mount; and former Cloudmark Inc. CEO George Riedel. Canaccord Genuity`s IT analyst Richard Close told FierceHealthcare that he was encouraged by the agreement with Starboard and that the steps build on the company`s previously announced efforts to improve operational performance. Cerner Media Contact: Joe Mandacina, (816) 571-9637, joe.mandacina@cerner.comCerner Investors Contact: Allan Kells, (816) 201-2445, AKells@cerner.com When Cerner (Nasdaq: CERN), based in North Kansas City, filed its cooperation agreement with Starboard Value in April, the activist investor held a 1.2% stake with 3.1 million shares. As of June 30, Starboard owns 3 million shares, or 0.92% of Cerner, a decrease of 3.1%, according to a statement filed Wednesday with the Securities and Exchange Commission. Cerner will now take the strategic direction of an investment company that owns only 1.2% of its outstanding shares.

As part of the agreement with Starboard, Cerner announced that it would also increase its margin targets. Peter Feld, Starboard`s executive, added: “We are delighted to have reached this agreement with Cerner, which involves a useful update of the Board of Directors and important steps to implement operational improvement initiatives that will drive profitable growth. We believe that the operating margin targets and the significantly expanded investment return program demonstrate a strong commitment to improving shareholder results and added value. We are confident that the new directors announced today will bring new perspectives and additional expertise to the Board of Directors. Cerner is a large company with considerable potential for value, and we look forward to the results of the initiatives announced today. As part of the cooperation agreement, Cerner is focused on improving adjusted operating margin, with targets of 20% for the fourth quarter of 2019 and 22.5% for the fourth quarter of 2020. KANSAS CITY, Mo., April 09, 2019 (GLOBE NEWSWIRE) — Cerner Corporation (NASDAQ: CERN) (“Cerner” or “Enterprise”) announced today that the company has entered into a cooperation agreement (the “cooperation agreement”) with Starboard Value LP (with some of its subsidiaries, “Starboard”).