Kansas City, Kansas – Cerner Corporation announces its intention to purchase the Siemens Health Services for a whopping $1.3 billion.
Cerner Corporation and Siemens are both selling software and consulting services, primarily to health care providers and urgent care clinics. These services help such institutions in managing their patient health records. The plan of acquisition intends to increase the Cerner’s revenues to $4.5 billion yearly. It would also boost the company’s worldwide employment up to 20,000.
Neal Patterson, chairman and chief executive of Cerner said that the Siemen’s assets such as healthcare Information Technology (IT) would provide a remarkable client base. Siemens Health Services assets also include well-versed associates who can help in achieving Cerner’s plans in the future. Patterson added that the combined efforts would result to further innovations in the industry of electronic medical records.
Analysts said that the Cerner’s urgent care or move in acquiring Siemens would lead to more markets for Cerner, while officials emphasized that it would strengthen Cerner’s position in the industry as the most dominant player. Zane Burke, Cerner president noted his excitement as the acquisition largely relates to Kansas City, from its humble beginnings to be the biggest healthcare IT company worldwide.
The acquisition funding is on a cash basis, approved by the board members of both institutions. The deal is expected to close early next year awaiting other regulatory approval by respective agencies such as the Securities and Exchange Commission (SEC).
At present, Cerner employs 14,000, while Siemens has 14,000. Their union will target 20,000 employees overall. Siemens’ employees will become Cerner associates with the acquisition. Most workers of the Siemens Health Services are based in Malvern, Philadelphia, with plans of adding employees in Germany. The joint efforts would project a total of $650 million in yearly research investments and development, plus marketing of products in 18,000 facilities worldwide.
Both companies tend to contribute in financing projects related to medical technologies, clinical outcomes, and medical workflow. As an urgent care near me a proposition, the companies will employ early focus on improving an accessible and timely flow of medical images.
Without a doubt, Cerner has undergone an explosive growth in the past years, and is open for continuous progress. As a sort of an urgent care clinic specifically for its workforce, it has built a tall building to house its 4,000 employees, funded the Sporting Park soccer stadium, and funded many other expansions for its “innovation campus” in Kansas City. Burke emphasized that the acquisition of the Siemens Health Services will only accelerate existing developments.
