eHealth giant Cerner has officially acquired Siemens‘ Health Services IT Unit, including assets, client relationships and associates, for $1.3 billion following the announcement in August 2014.

According to Senior Vice President of Cerner, Dick Flanigan, Cerner’s biggest acquisition to date was based on the two businesses’ complementary solutions and strengths.

According to Cerner, together their organisation and the former Siemens business unit have annual research-and-development investments of more than $650 million. The cumulative resources are expected to give Cerner further momentum going forward in creating its next generation of eHealth solutions.

“By combining client bases, investments in R&D and associates, we are in a great position to lead clients through one of the most dynamic eras in healthcare,” said Cerner Chairman, CEO and Co-Founder, Neal Patterson. “Cerner remains focused on key development areas including population health, physician experience, open platforms, revenue cycle and mobility. We see these as critical areas of investment to ensure providers can meet growing regulatory demands and control costs, while continuing to improve quality of care.”

Former CEO of Siemens Health Services, John Glaser, has been appointed as Cerner Senior Vice President and member of the company’s executive cabinet.

Siemens and Cerner have announced they will move forward with a three-year alliance designed to integrate health IT with medical technologies. Their first plan is to integrate diagnostics and therapeutics into the electronic health record (EHR). Each company will contribute up to $50 million to fund projects of shared importance.

“Siemens is a tenured company with a long and respected track record in healthcare,” said Patterson. “A unique feature of this acquisition is we’ll continue working with Siemens in a R&D capacity, in order to advance the interoperability of EHRs with medical devices.”

Cerner’s revenue in 2015 is expected to be approximately $4.8 billion to $5 billion, with a client base spanning more than 30 countries across more than 18,000 facilities.

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