Cerner has completed the acquisition of Siemens AG’s health information technology business unit, Siemens Health Services, for $1.3 billion in cash.

The acquisition was announced last August, received regulatory clearance in September, and was completed yesterday.  

Cerner and Siemens AG have also formed a strategic alliance designed to advance industry innovation. Each company plans to invest up to $50 million during an initial three-year period with a focus on integrating diagnostics and therapeutics into the electronic health record.

According to Cerner, with the acquisition of Siemens Health Services, Cerner expects to see combined annual revenues of between $4.8 and $5 billion.

“By combining client bases, investments in R&D and associates, we are in a great position to lead clients through one of the most dynamic eras in health care,” said Neal Patterson, Cerner chairman, CEO and co-founder, in a statement. “Cerner remains focused on key development areas including population health, physician experience, open platforms, revenue cycle and mobility. We see these as critical areas of investment to ensure providers can meet growing regulatory demands and control costs, while continuing to improve quality of care.”