Cerner Corporation said Tuesday it has inked a definitive agreement to buy Siemens’ health information technology business for $1.3 billion in cash.

As part of the agreement, the two companies will form an alliance geared towards creating products that combine Cerner’s health IT capabilities with Siemens Health Services’ medical devices and imaging technology. The alliance is initially slated to last three years, with each company contributing up to $50 million in fund projects of shared importance to them and their customers.

According to Cerner, the combined operation will include more than 20,000 associates and 18,000 client facilities in 30 countries. Annual revenues and R&D investment are projected at $4.5 billion and $650 million, respectively.

The deal is expected to close during the first quarter of 2015. — Kellen Owings

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