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Siemens plans to sell its business for hospital information systems for US$ 1.3 bn to Cerner Corp. and Agreement on strategic alliance

August 8, 2014



ENP Newswire - 08 August 2014

Release date- 06082014 - Siemens Healthcare plans to divest its hospital information system business for US$ 1.3 billion in cash to the US-based company Cerner Corp.

The HS business is focused on administrative hospital IT and electronic patient records, thus different from information technology that enhances the capabilities of imaging modalities and laboratory equipment. It is headquartered in Malvern, Pennsylvania, United States and employs some 6,000 employees worldwide with operations in the US, in Europe (particularly Germany), and in Asia. The transaction is subject to applicable regulatory approvals and planned to close during the first quarter of calendar year 2015.

The transaction is fully aligned with the overall strategy of Siemens - Vision 2020. 'In the recent years, we have continuously invested in our HS-portfolio and achieved significant progress on the technology side. At the same time, we realized that business success of our hospital information systems could not always keep pace with our competition', says Hermann Requardt, CEO Siemens Healthcare.

'Additionally an increasing number of country-specific requirements, such as resulting from US 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.' The takeover of the business by Cerner provides a positive perspective for customers and employees, as Cerner has a proven expertise and is one of the leading players in the market.

At the same time with the divestment, Siemens Healthcare and Cerner are engaging in a strategic alliance in the field of Next Generation Healthcare IT. Next Generation Healthcare IT is one of the future focus fields of action for Siemens Healthcare.

Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the fields of industry, energy and healthcare as well as providing infrastructure solutions, primarily for cities and metropolitan areas. For over 165 years, Siemens has stood for technological excellence, innovation, quality, reliability and internationality. The company is one of the world's largest providers of environmental technologies.

Around 43 percent of its total revenue stems from green products and solutions. In fiscal 2013, which ended on September 30, 2013, revenue from continuing operations totaled EUR75.9 billion and income from continuing operations EUR4.2 billion. At the end of September 2013, Siemens had around 362,000 employees worldwide on the basis of continuing operations.

This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as 'expect,' 'look forward to,' 'anticipate,' 'intend,' 'plan,' 'believe,' 'seek,' 'estimate,' 'will,' 'project' or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to shareholders and in press releases.

In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens' management, and are, therefore, subject to certain risks and uncertainties.

A variety of factors, many of which are beyond Siemens' control, affect Siemens' operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements or anticipated on the basis of historical trends.

These factors include in particular, but are not limited to, the matters described in Item 3: Key information - Risk factors of our most recent annual report on Form 20-F filed with the SEC, in the chapter Risks of our most recent annual report prepared in accordance with the German Commercial Code, and in the chapter Risks and opportunities of our most recent interim report.

Further information about risks and uncertainties affecting Siemens is included throughout our most recent annual and interim reports, as well as our most recent earnings release, which are available on the Siemens website, www.siemens.com, and throughout our most recent annual report on Form 20-F and in our other filings with the SEC, which are available on the Siemens website, www.siemens.com, and on the SEC's website, www.sec.gov.

Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of Siemens may vary materially from those described in the relevant forward-looking statement as being expected, anticipated, intended, planned, believed, sought, estimated or projected. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.

Contact:

Mr. Matthias Kraemer

Siemens AG

Tel: +49 (9131) 84-5551

Email: matthias.kraemer@siemens.com


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Source: ENP Newswire


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