Siemens AG paying $2.1 billion for Shared Medical Systems

International acquisitions

May 02, 2000|By NEW YORK TIMES NEWS SERVICE

NEW YORK -- German industrial giant Siemens AG said yesterday that it has agreed to purchase Shared Medical Systems Corp. of Malvern, Pa., a developer of services and information technology systems for the health care industry, in a cash deal valued at $2.1 billion

Siemens will pay $73 per share in cash, a 76 percent premium over Shared Medical Systems' closing price of $41.4375 on Friday.

Munich-based Siemens 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 United States 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 specializes in developing information technology systems for hospitals. The company has 7,600 employees and generates annual sales of about $1.2 billion.

Shared Medical shares surged $29.1875 to $70.625 on the Nasdaq stock market yesterday.

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