Cerner acquires Siemens Health Services for $1.3bn
pharmafile | August 7, 2014 | News story | Medical Communications, Sales and Marketing | Health IT, Siemens, imaging, mhealth
Cerner Corporation has signed a deal sealing its takeover of Siemens Health Services for $1.3 billion in cash.
Cerner will acquire Health Services, Siemens’ health information technology business unit, by the first quarter of next year.
As part of the agreement, Cerner and Siemens will form a strategic alliance to bring new solutions to market that combine Cerner’s health IT experience and Siemens’ strengths in medical devices and imaging.
By combining investments in R&D, knowledgeable resources, and complementary client bases, the acquisition creates ‘scale for future innovation’, according to the two firms.
The deal will also increase Cerner’s annual revenue from about $3 billion last year to more than $4.5 billion of annual revenue this year. The combined company will have 20,000 associates in more than 30 countries, and 18,000 facilities that will be clients.
“We believe this is an all-win situation for the clients of both organisations and all of our associates and shareholders,” says Neal Patterson, Cerner chairman, chief executive and co-founder.
“Through more than $4 billion of cumulative investments in R&D, Cerner has established a strong market standing and is positioned for continued growth. Siemens’ health care IT assets provide additional scale, R&D, an impressive client base, and knowledgeable and experienced associates who will help Cerner achieve our plans for the next decade.
“In addition, the alliance we’re creating will drive the next generation of innovations that embed information from the EMR inside advanced diagnostic and therapeutic technologies, benefitting our shared clients.”
In-line with the deal, Cerner and Siemens will also create a strategic alliance to jointly invest in innovative projects that integrate health IT with medical technologies.
Each company will contribute up to $50 million to fund projects of shared importance to both companies and their clients.
The alliance has a three-year initial term. Advanced workflows along with medical images and their role in diagnostic and therapeutic decision-making, will be an early focus of the joint work, according to Cerner.
“Siemens is very innovative around imaging, diagnostic and therapeutic technologies and processes,” says Patterson.
“Medical technologies generate mountains of images and other data that must be stored, accessed, visualised and interpreted intelligently. In addition, advanced diagnostic and therapeutic processes are enhanced by presenting EMR data at just the right moment and in the right context. Together we will innovate at the edge where IT, processes and technologies meet.”
Ben Adams
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