German industrial giant



said on Monday that it had agreed to purchase

Shared Medical Systems


, a developer of services and information technology systems for the health care industry, in a cash deal valued at $2.1 billion

Under the terms of the deal, Siemens will pay $73 per share in cash, a 76% premium over Shared Medical Systems' closing price of 41 7/16 on Friday. (Shared Medical Systems finished Monday trading up 29 3/16, or 70%, at 70 5/8.)

Siemens of Munich said the acquisition would help the company to expand the range of information technology services it provides.

"From a strategic perspective, our competencies in medical technologies and SMS' strength in health care information technology and networking makes this an optimal fit," Erich Reinhardt, president of

Siemens Medical Engineering Group

, said in a statement.

Siemens Medical Engineering provides a full range of products and services for the health care industry. A division of Siemens, Siemens Medical Engineering employs 4,500 people in the U.S. and has annual sales of about $1.8 billion. Siemens Medical Systems is its U.S. affiliate and is based in Iselin, N.J.

Shared Medical of Malvern, Pa., specializes in developing information technology systems for hospitals. The company has 7,600 employees and generates annual sales of about $1.2 billion.

Siemens and Shared Medical expect the tender offer to be launched within the next 10 days.



made a $2 billion unsolicited bid to buy Shared Medical earlier this year but dropped the offer after being acquired by