Siemens sells health IT unit to Cerner

Siemens has announced the sale of its health information technology business unit Siemens Health Services to Cerner.

The $1.3 billion (778.95 million pounds) deal will greatly expand Cerner's size and capabilities, with the combined organisation to employ around 20,000 people in more than 30 countries and generate annual revenue of $4.5 billion.

As part of the agreement, Cerner and Siemens will form a new strategic alliance to develop solutions that combine Cerner's health IT leadership with Siemens' traditional strengths in medical devices and imaging.

Each company will contribute up to $50 million to fund projects of shared importance to both companies and their clients, with the alliance to run for an initial three years.

Dr John Glaser, chief executive officer of the health services business unit of Siemens Healthcare, said: "The knowledge and strength of our combined resources opens up great possibilities for future collaboration and development, which is exciting for all of us."

This comes after Siemens sold off its clinical microbiology business to Beckman Coulter last month.