Siemens and Cerner Corporation signed a definitive agreement under which the latter will acquire the assets of Siemens’ health information technology business unit, Siemens Health Services, for $1.3 billion in cash, the companies announced Tuesday.
“We realised that business success of our hospital information systems could not always keep pace with our competition,” noted Siemens Healthcare CEO Hermann Requardt, who also cited “an increasing number of country-specific requirements, such as resulting from US healthcare reform.” He added that looking ahead, the company “will focus on the development of information systems that support our businesses in laboratory diagnostics, as well as imaging and therapy.” The acquisition, which has been approved by the companies’ boards, is expected to close in the first quarter of 2015.
As part of the agreement, the companies will also form a strategic alliance, investing up to $50 million each in new projects that integrate health IT with medical technologies. The project, which has a three-year initial term, will first focus on advanced workflows along with medical images and their role in diagnostic and therapeutic decision-making. Cerner noted that the alliance “will drive the next generation of innovations that embed information from the [electronic medical record] inside advanced diagnostic and therapeutic technologies.”
The transaction is expected to be more than $0.15 accretive to Cerner’s 2015 earnings per share, and more than $0.25 accretive in 2016.
Last month, Danaher subsidiary Beckman Coulter entered into a definitive agreement to purchase Siemens Healthcare Diagnostics’ clinical microbiology business. The transaction, of which financial terms were not disclosed, is expected to close in the first quarter of 2015.