Siemens Health Services is set to be acquired by Cerner Corp. for $1.3 billion in cash. The merger is expected to close early next year.
Siemens’ healthcare information technology business is based in Malvern, Pa., and is a unit of German industrial conglomerate Siemens AG. Siemens AG and Kansas City, Mo.-based Cerner announced the deal Tuesday.
Cerner and Siemens Health Services have combined totals of more than 20,000 associates in more than 30 countries, 18,000 client facilities, $4.5 billion of annual revenue and $650 million of annual research and development investment, apress release noted.
The two global companies have formed an initial three-year alliance to integrate health IT with medical technologies. Each company will contribute up to $50 million to fund projects of shared importance.
“We are excited to join with one of the most competitive companies in health IT today, and a recognized leader in innovation,” said John Glaser, 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.”
As time presses on, it’s uncertain as to what will happen to Siemens’ space in Malvern, as well the thousands of employees that work there.
But for now, the “current plans call for associates based in their locations to continue working from their current locations,” Victoria Guerra, a Cerner spokeswoman, said in an email. “In the near-term Cerner intends to operate the business separately.”
Date: August 6, 2014