Cerner Corporation has signed a definitive agreement to acquire Siemens Health Services, the health information technology business unit of Siemens AG, for $1.3 billion in cash.
Based on 2014 estimates, the combined company will have $4.5 billion in annual revenue and have 18,000 client facilities, according to a statement released today by Kansas City, Mo.-based Cerner. An annual investment of $650 million will be put toward research and development.
Support for Siemens Health Services core platforms will remain in place, according to the announcement, with current implementations set to continue. Cerner plans to support the Soarian platform for at least the next decade.
"We believe this is an all-win situation for the clients of both organizations and all of our associates and shareholders," said Neal Patterson, Cerner chairman, CEO and co-founder.
"Siemens cares deeply about its clients and believes Cerner is the best organization to fully support their health IT needs going forward,” said John Glaser, PhD, CEO of the Health Services business unit of Siemens Healthcare. “The knowledge and strength of our combined resources opens up great possibilities for future collaboration and development, which is exciting for all of us.”