Siemens Rebrands its Healthcare Business

In addition, the company will add new offerings, such as managed services, consulting and digital services, and further technologies to strengthen its position in the growing market of therapeutic and molecular diagnostics. The name of the legal entities will remain unchanged.

As part of its Vision 2020 strategy, Siemens (Munich, Germany) announced in 2014 that its healthcare business would be separately managed as a company within the company, with a new organizational setup, so as to close the gap with more profitable competitors such as ABB (Zurich, Switzerland) and General Electric. The rebranding, as well as the addition of new healthcare capabilities and the separation of the business, strengthens long-standing speculation that Siemens is planning an initial public offering (IPO) of the healthcare business.

“We have an exceptional track record of engineering and scientific excellence and are consistently at the forefront of developing innovative clinical solutions that enable providers to offer efficient, high quality patient care,” said Bernd Montag, CEO of Siemens Healthineers. “Our new brand is a bold signal for our ambition and expresses our identity as a people company - 45,000 employees worldwide who are passionate about empowering healthcare providers to optimally serve their patients.”

In 2014 Siemens sold off its hospital IT business, then Siemens Health Services, to Cerner (Kansas City, MO, USA), a provider of healthcare IT services, for USD 1.3 billion. A that time, the company said it would focus its efforts in the healthcare IT area on the development of systems for its laboratory diagnostics sector, as well as its imaging and therapy businesses. Cerner combined the hospital IT business with its own operations, creating an entity with USD 4.5 billion of annual revenue and USD 650 million of annual investments in research and development.

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