Cerner Corporation and Siemens AG have entered into a definitive agreement for Cerner to acquire Siemens’ health IT business unit, Siemens Health Services, for $1.3 billion in cash.

The two companies will have a combined total of $4.5 billion annual revenue, $650 million in annual research and development investment, 20,000 associates in more than 30 countries and 18,000 client facilities worldwide.

The acquisition will help Cerner compete with other health IT giants such as Epic Systems, according to an article in Forbes. Cerner, along with Epic, has been edging out other vendors when it comes to the number of contracts they have with hospitals.