Today in Philly Tech History 5/1/2000: Siemens agrees to acquire Malvern-based Shared Medical Systems for $2.1 billion
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On May 1, 2000, Siemens announced it had agreed to acquire Malvern-based Shared Medical Systems for $2.1 billion. The price per share of $73 was a 76 percent premium to SMS's closing share price of $41.44 on the previous trading day. SMS had turned down an unsolicated offer of $67 per share from Eclipsys Corp in March.
One of the leading providers of information systems to hospitals, Shared Medical at the time had annual revenues of $1.2 billion. But it was facing difficulties, resulting partially from the ending of the Y2K conversion cycle and the rise of Web-based technologies. Founded in 1969, SMS had 7,600 employees worldwide and 3,850 in Chester County, the Inquirer reported when the acquisition was announced. Later that year Shared Medical would cut 8% of its staff, including 300 in Malvern.
What was Shared Medical is now essentially the Health Services Business Unit of Siemens Healthcare and has over 4500 employees, according to Siemens' website. Although still a major player, like several "legacy vendors" it has had difficulty keeping pace with some newer competitors, especially industry giant Epic and other smaller upstarts.
Malvern is still the headquarters for the Health Services Business Unit, as well as for all of Siemens Medical Solutions USA.