Siemens To Sell Hospital IT Business for Alleged $1.4 Billion

Siemens AG is reportedly exploring a sale of its hospital IT business for approximately $1.4 billion.

According to a report from Bloomberg, the German engineering company is evaluating options for the unit, which produces medical database systems that help manage patient care, but no final decision has been made.

In a note to clients, Natalia Mamaeva, an analyst at Citigroup Inc., stated that the key focus for the company was not the cash generation via disposals, but rather the clear-out of the peripheral assets.

Under current CEO Joe Kaeser, Siemens has begun a spin-off of their hearing aids unit while also carving out the healthcare business. The business, in short, produces medical imaging equipment and clinical diagnostic testing kits.

Kaeser is reported to be focusing on electrification, automation and digitalization for Siemens’ future.  

As of late 2012, Siemens has divested over $3.1 billion worth of assets, which could add up to $4.5 billion once it divests from the hospital IT business. The company is also evaluating a sale of its microbiology unit for around $300 million, while it has already divested eight businesses which include a joint venture with Nokia and a sale of its lighting unit Osram Licht AG last year.