Health information technology company Cerner Corp. is buying the health information technology business unit of German industrial conglomerate Siemens AG for $1.3 billion in cash.

The two companies announced the deal on Tuesday.

Kansas City-based Cerner says it expects the acquisition of Siemens Health Services to contribute 15 cents per share to its adjusted earnings next year and more than 25 cents per share in 2016.

Cerner intends to finance the acquisition with available cash.

Both companies' boards have approved the proposed deal, which is expected to close in the first three months of 2015.

As part of the pact, Cerner and Siemens agreed to team up for at least three years to develop new products or services in the field of medical technology.