Healthcare information services provider Cerner Corp. (NASDAQ: CERN – $68.14) said it has entered into a definitive agreement to acquire AbleVets – a strategic IT consulting and engineering firm – as a wholly owned subsidiary. The acquisition of the Washington, DC area-based company will provide Cerner even greater scale and technical expertise in designing and implementing modernization solutions, particularly in the federal space. Financial terms were not disclosed, and the companies expect to complete the transaction in the fourth quarter. AbleVets was founded as a Disabled Veteran-Owned Small Business and focuses on the unique missions of federal health clients. AbleVets brings 350 professionals—many of whom are Veterans—specialized in cybersecurity, agile engineering, analytics and technology enablement to Cerner.
High-quality CERN shares come with a degree of risk as client reimbursement rates will likely cut into lucrative sales growth in a maturing industry. Following a decent second quarter, full-year earnings should settle at $2.68 per shares compared to last years $2.46 and the consensus for 2020 is $3.18. The newly initiated dividend yields 1.1% and shares can be held in a well-diversified aggressive portfolio for now.