Is Cerner looking forward to forward to acquiring Siemens?

A revolution is expected in the health and information technology sector where Cerner looks forward to acquire Siemens.  This will be a major breakthrough for both the companies. Siemens Healthcare failed to meet the EHR vendors resulting in a decrease in market share in the fiscal year of 2013. Cerner’s Healthcare wing along with Siemens is now on the verge of exploring new possibilities.

While Siemens failed to achieve the target, Cerner stock on the other hand has approximately above 14000 employees globally and also their market share has increased where there adjusted earnings have risen to $497 million.  

A profit of 2.8 billion dollars was observed by Siemens in the fiscal year of 2013 which comprises of 4 divisions. These divisions include imaging, therapy, clinical products and diagnostic facilities. Moreover they offer customer facilitation as well.

Through an email statement the spokesman of Siemens said that "as a matter of company policy, we cannot comment on market rumors." Hence Siemens is aware of the rumors in the market but does not want to comment in this regard.

In the interim report for the second quarter of FY14, Siemens did acknowledge that it is about to experience some major changes. "As of Oct. 1, 2014, the organization will be streamlined by eliminating the sector level and bundling business into nine divisions instead of the current 16. Healthcare will be separately managed in the future,"

A representative at Siemens stated that the transformation in the healthcare sector was managed through "company within a company" that would result in "greater entrepreneurial independence."

Siemens has a very big workforce. Their health and information technology division constitutes of a customer satisfaction department has almost 52000 people hired worldwide. Apart from this the total number of workers exceeds 108,000.

"The trend toward consolidation in the Sector's (healthcare) industry continues," officials wrote in the company's 2013 financial report. "Competition among the leading companies in the field is strong, including with respect to price."

Moreover Cerner stock price today itself is reluctant to talk about this acquisition publicly. 10% of the total hospital use Cerner’s technology to attest whereas only 4% use Siemens HER technology to attest. If this acquisition happens then both the companies would benefit as there is immense room for growth for the two companies. Till the companies do not come upfront about this acquisition we can only hope for good in the future.