Siemens (NYSE: SI) has agreed to sell its health information technology business to Cerner (NASDAQ: CERN) for $1.3 billion cash following approval from the companies’ respective boards.
Cerner said Tuesday that it expects the acquisition to add at least 15 cents in 2015 and 25 cents in 2016 to its non-GAAP diluted earnings per share.
“The knowledge and strength of our combined resources opens up great possibilities for future collaboration and development, which is exciting for all of us, ” said John Glaser, CEO of Siemens Health Services.
Under the agreement, Cerner will provide support for Siemens Health Services platforms and implementations as well as leverage its health IT solutions with Siemens’ medical imaging and devices as part of a three-year strategic alliance.
According to the announcement, Cerner and Siemens will each invest $50 million in projects that focus on combining medical technologies and health IT to bolster clinical workflows and outcomes.
“Together we will innovate at the edge where IT, processes and technologies meet, ” said Neal Patterson, Cerner co-founder, chairman and CEO.
Cerner joined forces with Accenture (NYSE: ACN) and Leidos (NYSE: LDOS) earlier this year to pursue the Defense Department‘s healthcare IT records system contract.
The close of transaction is scheduled for the first quarter of 2015, with financial advice from Greenhill & Co. and JP Morgan and legal advice from Latham & Watkins and Clifford Chance.