Cerner Corporation (CERN), a leading supplier of healthcare information technology solutions, services, devices and hardware and Siemens AG have recently announced that they signed a definitive agreement for Cerner to acquire the assets of Siemens’ health information technology business unit, Siemens Health Services for $1.3 billion. The deal is expected to close in early 2015.

Siemens Health Services

One of the largest suppliers of healthcare technology in the world, Siemens Healthcare division offers solutions for the entire supply chain under one roof – from prevention and early detection through diagnosis and on to treatment and aftercare. The vast range of laboratory equipment and related products offered by this industry leader includes chemistry analyzers, urine analyzers, immunoassay systems, and reagent strips.

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, CEO of the Health Services business unit of Siemens Healthcare.

Siemens Health Services’ employees combined with Cerner’s 14,200 associates will total nearly 20,000 associates across more than 30 countries. By combining investments in R&D, knowledgeable resources, and complementary client bases, this acquisition is expected to help Cerner bring new products and services into the market that leverage both Cerner’s health IT platforms and Siemens’ medical devices and imaging niche. Along with providing value to Siemens’ business, the deal will increase Cerner’s annual revenue from about $3 billion last year to more than $4.5 billion of annual revenue this year.

This acquisition will “bring an impressive worldwide client base”, expanding reach in European countries such as Germany, Austria, Spain, Sweden and Norway, said Cerner president, Zane Burke.