Cerner acquires Malvern-based Siemens Health Services for $1.3 billion






Tom Paine



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Cerner has agreed to acquire Malvern-based Siemens Health Services, one of the major purveyors of hospital administrative systems and EHRs, for $1.3 billion. Siemens Health Services grew out of the 2001 acquisition of Shared Medical Systems, but its growth had stalled in recent years as other vendors (particularly Epic) had gained prominence.

Shared Medical was founded in 1969. Siemens acquired it for $2.1 billion.

The health IT business is only one part of a much larger Siemens Healthcare segment. Siemens had decided to exit the business so finding a buyer who would be a good custodian for it became a top priority, Siemens said. Siemens Health Services estimates its 2014 revenue at $1.2 billion. Cerner, which is based in Kansas City, expects combined 2014 revenue of $4.5 billion.

Although Siemens apparently will dispose of some other pieces of its Healthcare unit as a result of a corporate strategic review, it plans an ongoing joint venture with Cerner that will combine capabilities of Cerner's IT business with Siemen's diagnostic businesses.

Cerner indicated that in the short term it expected to operate the two businesses on a stand-alone basis and no major personnel changes are imminent. The combined company will have 20,000 employees, of whom about 5,000 appear to be coming over from Siemens.
The trade source HIStalk provides excellent coverage.


Liberty Interactive reaffims intent to create QVC tracking stock, but doesn't say when





Tom Paine



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Liberty Interactive had announced late last year (I believe) its intent to create one of its separate tracking stocks for its West Chester-based QVC business named the QVC Group. Tracking stocks, which Liberty Interactive's John Malone employs frequently, do not carry ownership of a company's assets but are intended to reflect the underlying value of the asset.

Little more had been said and no action had been taken since then. But today Liberty Interactive said it still planned on creating the QVC Group tracking stock, consisting of its interests in QVC and HSN (38%). However, Liberty said it has delayed the move "in light of the pending Provide Commerce transaction (agreed to be acquired by FTD), and other factors. As a result, "Liberty is reevaluating the optimal structure and best alignment of the Liberty Digital Commerce Group assets," and "the timing of the transition to the QVC Group has been delayed".

No word on when it will happen, but when it does the QVC entity will trade separately on the market with a value likely in excess of $10 billion. It may also facilitate the oft-discussed merger of QVC and HSN.