IBA Health of Australia is acquiring iSoft, a key
provider for the NHS National Programme for IT
(NPfIT).
The all-share offer is worth around £140m, with iSoft
shareholders entitled to receive 1.1 new IBA shares for each iSoft
share.
ABN AMRO Rothschild will be used by IBA to provide £130m in new
debt facilities to refinance loss-making iSoft’s existing bank
facilities.
The merger of IBA and iSoft will create one of the world's
largest healthcare IT providers, with an installed base of
approximately 13,000 healthcare systems across the UK, Ireland,
continental Europe, Africa, the Middle East, Asia, Australia and
New Zealand.
Gary Cohen, executive chairman of IBA, said, “With iSoft’s key
position in the UK National Programme for IT, IBA will have an
influential reference site for future worldwide deployment.”
ISOFT’s Lorenzo care records system is well
behind schedule and as a result has caused problems for other
systems being deployed by other NPfIT providers.
John Weston, chairman and acting CEO of iSoft, said, “We believe
this offer and the associated refinancing of the combined
businesses’ balance sheet will enable continuity on the National
Programme.”
To go ahead, the acquisition must be approved by iSoft
shareholders and iSoft NPfIT partner CSC, which is providing NPfIT
systems in three regions of England.
iSoft’s future uncertain after more losses
>>
Troubled NHS software provider up for sale >>
iSOFT reveals £382m loss >>
iSOFT 'irregularities' to be investigated >>
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Against the current: exploring the challenges of complex IT
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