Cerner Corp. has officially acquired Siemens Health Services, a unit of German industrial conglomerate Siemens AG.
The $1.3 billion deal, announced in August, has successfully put Siemens’ healthcare information technology business, based in Malvern, Pa., under Cerner’s realm.
Dick Flanigan, senior vice president of Cerner (Nasdaq: CERN), said the Kansas City, Mo.-based company was drawn to Siemens Health Services because of the two businesses’ complementary solutions and strengths. He said it’s Cerner’s biggest acquisition.
Together, Cerner and the former Siemens business unit have annual research-and-development investments of more than $650 million, according to a company statement. Cerner will now have a boost in creating its next generation of health IT solutions.
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Former CEO of Siemens Health Services John Glaser now serves as a Cerner senior vice president and member of the company’s executive cabinet.
For the most part, the 2,800 employees affected by the merger in Malvern have kept their jobs, Flanigan said. (Other local Siemens businesses, like diagnostic medical imaging and in-vitro diagnostics, weren’t acquired by Cerner.)
Cerner has also acquired the three connected buildings in Malvern owned by Siemens, which is where all of the former Siemens Health Services employees will be located, and remain. Cerner also has acquired Siemens’ Malvern data center.
The other Siemens employees, that were not part of the merger, will continue working out of the company’s nearby leased space.
Siemens AG and Cerner also announced they will move forward with a three-year alliance designed to integrate health IT with medical technologies. At first, they plan to integrate diagnostics and therapeutics into the electronic health record. Each company will contribute up to $50 million to fund projects of shared importance.
Date: February 2, 2015