This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Siemens Sells Healthcare IT Unit to Cerner in $1.3B Deal

Stocks in this article: CERN GE

BERLIN (The Deal) -- Germany's Siemens on Tuesday agreed to sell its hospital information systems division to Cerner (CERN) as CEO Joe Kaeser makes good on a promise to focus the German industrial giant on businesses including automation and power generation equipment.

Cerner agreed to pay $1.3 billion for the division, which is based in Malvern, Pa. and helps hospitals move administrative and patient record-keeping into the digital era.

Digitizing patient records may help doctors better treat individual patients by flagging conflicting medications or past conditions. It also helps track statistical trends in illnesses, a key component to President Obama's healthcare overhaul.

The unit does not include Siemens' digital medical imaging and supporting businesses.

"An increasing number of country-specific requirements, such as resulting from U.S. healthcare reform, make it increasingly challenging to achieve sufficient scale effects. Going forward we will focus on the development of information systems that support our businesses in laboratory diagnostics as well as imaging and therapy," said Hermann Requardt, who is CEO of Siemens Healthcare, in a statement.

It's the second medical sale this year for Siemens. In July the Munich-based company agreed to sell its clinical microbiology business to Danaher Corp.'s Beckmann Coulter Inc. No price was given in that sale and Siemens said it didn't expect to book a gain as part of the divestment.

CEO Kaeser, formally the company's top finance man, has been working to boost the company's power generation business and this year attempted unsuccessfully to keep General Electric (GE) away from France's Alstom by lodging a competing bid for the French company's power-generation equipment assets. Still, he did manage to buy nearly all of Rolls-Royce Holdings plc's energy assets for $1.3 billion.

Despite selling the unit to Cerner, both Siemens and Cerner said they would jointly continue to develop the electronic records system for a decade -- and contribute $50 million over three years to projects they both can benefit from.

Greenhill & Co. acted as Cerner's financial adviser with counsel coming from a Latham & Watkins LLP team of Jim Beaubien, Harald Selzner, Thomas Fox, Ulrich Wuermeling, Thies Deike, Joachim Grittmann, Norma Studt and Christian Engelhardt.

Siemens turned to JPMorgan Chase & Co. for financial advice with Crowell & Moring's Olivier Antoine and Clifford Chance LLP's Nicole Englisch, Jan Wrede and Matthias Wahl for counsel.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,921.10 +116.30 0.65%
S&P 500 2,073.33 +2.68 0.13%
NASDAQ 4,775.8820 +10.5020 0.22%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs