08.06.14
Kansas City, Mo.-based Cerner Corp. will acquire the assets of Siemens' health information technology business unit, Siemens Health Services, for $1.3 billion in cash. As part of the agreement, Cerner and Siemens will create a strategic alliance to bring new solutions to market that combine Cerner's health information technology (IT) experience and Siemens' capabilities in medical devices and imaging.
The Health Services division of Germany-based Siemens is located in Malvern, Pa.
"We believe this is an all-win situation for the clients of both organizations and all of our associates and shareholders," said Neal
Patterson, Cerner's chairman, CEO and co-founder. "Through more than $4 billion of cumulative investments in research and development (R&D), Cerner has established a strong market standing and is positioned for continued growth. Siemens' healthcare IT assets provide additional scale, R&D, an impressive client base, and knowledgeable and experienced associates who will help Cerner achieve our plans for the next decade. In addition, the alliance we're creating will drive the next generation of innovations that embed information from the electronic medical record (EMR) inside advanced diagnostic and therapeutic technologies, benefiting our shared clients."
Cerner was started at Patterson's kitchen table in 1979.
"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, Ph.D., CEO of the Health Services business unit of Siemens Healthcare. "Siemens cares deeply about its clients and believes Cerner is the best organization to fully support their health IT needs going forward. The knowledge and strength of our combined resources opens up great possibilities for future collaboration and development, which is exciting for all of us. And our clients will benefit from our alignment with a company that has such a strong historical and future commitment to rapid innovation."
Based on 2014 estimates, Cerner and Siemens Health Services have combined totals of more than 20,000 associates in more than 30 countries; 18,000 client facilities, including some of the largest healthcare organizations in their respective countries; $4.5 billion of annual revenue; and $650 million of annual R&D investment.
"We have tremendous respect for Siemens' clients, their markets and their needs," said Patterson. "We look forward to bringing them into the Cerner family, especially as they face increasingly complex clinical and regulatory environments, with mandates to improve quality and pressures to lower cost. We pride ourselves on helping clients navigate changing times so they can be leaders in providing care to their communities. We're committed to supporting Siemens' clients, and we want them to have confidence that we have the vision, scale and resources to help them achieve their plans for building their organizations' futures."
Following the acquisition, support for Siemens Health Services core platforms will remain in place. Current implementations will continue, and Cerner plans to support and advance the Soarian platform (a hospital information system by Siemens) for at least the next decade. Cerner officials said the company would work with all Siemens' clients to support their short-term and long-term business needs.
Cerner and Siemens will create a strategic alliance to jointly invest in innovative projects that integrate health IT with medical technologies for the purpose of enhancing workflows and improving clinical outcomes. Each company will contribute up to $50 million to fund projects of shared importance to both companies and their clients.
The alliance has a three-year initial term. Advanced workflows along with medical images and their unique role in diagnostic and therapeutic decision-making, will be an early focus of the joint work.
"Siemens is very innovative around imaging, diagnostic and therapeutic technologies and processes," said Patterson. "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."
The Health Services division of Germany-based Siemens is located in Malvern, Pa.
"We believe this is an all-win situation for the clients of both organizations and all of our associates and shareholders," said Neal
Patterson, Cerner's chairman, CEO and co-founder. "Through more than $4 billion of cumulative investments in research and development (R&D), Cerner has established a strong market standing and is positioned for continued growth. Siemens' healthcare IT assets provide additional scale, R&D, an impressive client base, and knowledgeable and experienced associates who will help Cerner achieve our plans for the next decade. In addition, the alliance we're creating will drive the next generation of innovations that embed information from the electronic medical record (EMR) inside advanced diagnostic and therapeutic technologies, benefiting our shared clients."
Cerner was started at Patterson's kitchen table in 1979.
"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, Ph.D., CEO of the Health Services business unit of Siemens Healthcare. "Siemens cares deeply about its clients and believes Cerner is the best organization to fully support their health IT needs going forward. The knowledge and strength of our combined resources opens up great possibilities for future collaboration and development, which is exciting for all of us. And our clients will benefit from our alignment with a company that has such a strong historical and future commitment to rapid innovation."
Based on 2014 estimates, Cerner and Siemens Health Services have combined totals of more than 20,000 associates in more than 30 countries; 18,000 client facilities, including some of the largest healthcare organizations in their respective countries; $4.5 billion of annual revenue; and $650 million of annual R&D investment.
"We have tremendous respect for Siemens' clients, their markets and their needs," said Patterson. "We look forward to bringing them into the Cerner family, especially as they face increasingly complex clinical and regulatory environments, with mandates to improve quality and pressures to lower cost. We pride ourselves on helping clients navigate changing times so they can be leaders in providing care to their communities. We're committed to supporting Siemens' clients, and we want them to have confidence that we have the vision, scale and resources to help them achieve their plans for building their organizations' futures."
Following the acquisition, support for Siemens Health Services core platforms will remain in place. Current implementations will continue, and Cerner plans to support and advance the Soarian platform (a hospital information system by Siemens) for at least the next decade. Cerner officials said the company would work with all Siemens' clients to support their short-term and long-term business needs.
Cerner and Siemens will create a strategic alliance to jointly invest in innovative projects that integrate health IT with medical technologies for the purpose of enhancing workflows and improving clinical outcomes. Each company will contribute up to $50 million to fund projects of shared importance to both companies and their clients.
The alliance has a three-year initial term. Advanced workflows along with medical images and their unique role in diagnostic and therapeutic decision-making, will be an early focus of the joint work.
"Siemens is very innovative around imaging, diagnostic and therapeutic technologies and processes," said Patterson. "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."