DGAP-News

Cerner to Acquire Siemens Health Services for $1.3 Billion

DGAP-News: Cerner Corporation
Cerner to Acquire Siemens Health Services for $1.3 Billion

05.08.2014 / 22:55

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Acquisition to further industry innovation with a combined $650 million annual
R&D investment

Complementary client bases expand global presence

Cerner and Siemens AG to combine strengths to deliver new solutions through $100
million strategic alliance

KANSAS CITY, Mo., Aug. 5, 2014 (GLOBE NEWSWIRE) -- Cerner Corporation
(Nasdaq:CERN) and Siemens AG today announced they signed a definitive agreement
for Cerner to acquire the assets of Siemens' health information technology
business unit, Siemens Health Services, for $1.3 billion in cash. By combining
investments in R&D, knowledgeable resources, and complementary client bases,
the acquisition creates scale for future innovation. As part of the agreement,
Cerner and Siemens will form a strategic alliance to bring new solutions to
market that combine Cerner's health IT leadership and Siemens' strengths in
medical devices and imaging.

'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
chairman, CEO and co-founder. 'Through more than $4 billion of cumulative
investments in R&D, Cerner has established a strong market standing and is
positioned for continued growth. Siemens' health care 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 EMR inside advanced diagnostic
and therapeutic technologies, benefitting our shared clients.'

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 health care
organizations in their respective countries
-- $4.5 billion of annual revenue
-- $650 million of annual R&D investment

The transaction is expected to be more than $0.15 accretive to Cerner's
non-GAAP diluted EPS in 2015, and more than $0.25 accretive in 2016. Non-GAAP
earnings are expected to exclude share-based compensation expense, one-time
transaction costs, and acquisition-related amortization and deferred revenue