Print“The Siemens deal addresses “opportunities of being part of a larger part of healthcare spend,” Patterson says. ”
Electronic medical records powerhouse Cerner is buying Siemens’ health information technology business unit, Siemens Health Services, for $1.3 billion in cash. Cerner says the combination creates scale for future innovation. As part of the deal, Cerner and Siemens will form a strategic alliance to bring new solutions to market that combine the Cerner’s strength in healthcare IT with Siemen’s strength in medical devices and imaging.
“We believe this is an all-win situation for the clients of both organizations and all of our associates and shareholders,” says Neal Patterson, Cerner chairman, CEO and co-founder. “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.”
The combined company will have presence in more than 30 countries, about $4.5 billion of annual revenue, and will invest about $650 million annually in R&D.
Cerner and Siemens’ alliance has an initial three-year term and will invest in innovative projects that integrate health IT with medical technologies to improve workflows and clinical outcomes. The companies will each contribute up to $50 million to fund projects.
"Siemens is very innovative around imaging, diagnostic and therapeutic technologies and processes,” Patterson says. “Medical technologies generate mountains of images and other data that must be stored, accessed, visualized 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.”
In a conference call after the deal was announced, Patterson noted that while electronic medical records are becoming ubiquitous, the company is looking to move to the “layer above the EMR.” The Siemens deal addresses “opportunities of being part of a larger part of healthcare spend,” Patterson says.
Cerner says it will fund the deal with cash on hand. It is expected to close in the first quarter of 2015. Cerner says the deal will add 15 cents per share to its 2015 earnings and expects it to add 25 cents per share to 2016 earnings.
August 08, 2014
http://www.burrillreport.com/article-cerner_buys_siemens_health_services_for_1_3b.html
