cat file2 >> file1
The >> operator appends the output to the named file or creates the named file if it does not exist.
cat file1 file2 > file3
This concatenates two or more files to one. You can have as many source files as you need. For example,
cat *.txt >> newfile.txt
Update 20130902
In the comments eumiro suggests "don't try cat file1 file2 > file1." The reason this might not result in the expected outcome is that the file receiving the redirect is prepared before the command to the left of the > is executed. In this case, first file1 is truncated to zero length and opened for output, then the cat command attempts to concatenate the now zero-length file plus the contents of file2 into file1. The result is that the original contents of file1 are lost and in its place is a copy of file2 which probably isn't what was expected.
Update 20160919