Cerner Corp. announced Tuesday it will acquire Siemens Health Services for $1.3 billion in cash. The purchase is expected to increase revenue and employment by more than a third each for the North Kansas City-based health care information technology company, boosting Cerner’s employee count to 20,000 and its revenues to $4.5 billion annually.
Company executives say the deal with Siemens Health Services, a subsidiary of German company SiemensAG, will solidify Cerner’s position as a dominant player in the growing health care IT market.
Cerner chairman and CEO Neal Patterson said in a press release that the combined operations of Cerner and Siemens Health Services “will drive the next generation of innovations” in the electronic medical records industry.
The transaction, which has received the green light from both companies’ boards, is expected to close in the first quarter of 2015, pending regulatory approval.