An electronic medical records provider, Cerner Corporation said that for $1.3 billion it would acquire Siemens AG’s health information technology unit.

Cerner which is based in Kansas City said that the purchase is expected to add over 15 cents to earnings a share in 2015.

Cerner is the fourth-leading supplier of electronic records systems to U.S. hospitals. Siemens had been exploring the sale of its hospital information unit to focus on its industrial and energy businesses.

Chief executive officer and chairman of Cerner, Neal Patterson said that they believe this is an all-win situation for the clients of both organizations and all of their shareholders and associates.

According to sources, the health-care division for Munich-based Siemens had the highest profit margin of the company’s four businesses in 2013. Joe Kaeser, CEO of Siemens has sought to spin off parts of the health unit and focus the rest of the company on digitalization and automation.

Beckman Coulter Inc. last month agreed to acquire Siemens’s clinical microbiology business in a deal which is expected to close in the first quarter of 2015. Last year Siemens divested eight businesses, the most for any European industrial company.

Combined with Siemens’s health IT unit, Cerner said it expects annual sales of $4.5 billion, about $1.6 billion more than in 2013. According to Cerner, research and development expenditures will be about $650 million annually.

Cerner added it will continue to support an electronic records system developed by Siemens for at least a decade. The company added that under the strategic alliance, both companies will contribute as much as $50 million over three years toward projects of shared importance.

The electronic health records business in the US is led by Epic Systems Corporation which supplies about 19 percent of hospitals and 20 percent of doctors’ offices. Cerner supplies around 9 percent of US hospitals.