NHS IT supplier CSC has refused to back
the takeover of iSoft, a firm contracted to build software for
millions of electronic health records.
The planned £140m takeover of IT group iSOFT by Australian rival
IBA Health would have injected cash into the firm which had
suffered financial difficulties in recent years.
Last year
iSOFT posted losses of £382 million in August and, without the
takeover, is believed to have only enough cash to survive until
November this year. It is also
under investigation by finance watchdog the FSA.
IBA said iSOFT had received a letter from CSC saying that that
it would not consent to a change of control at iSOFT. CSC has a
right to veto any takeover of iSOFT as part of its contract with
the firm to supply the £6bn
National Programme for IT in the NHS.
A spokeswoman for CSC said its decision not to consent to the
proposed change in control of iSOFT was in the best interests of
achieving the goals of the programme.
“CSC has undertaken due diligence to assess the impact of the
IBA transaction on NPfIT. Our ongoing discussions and
correspondence with iSOFT clearly reflected CSC's concerns and
position, resulting in CSC confirming on 28 May, that it does not
intend to consent to the IBA transaction.”
CSC remained supportive of iSOFT’s delivery, she said.
“We currently have around 100 of our own staff fully engaged
with iSOFT in this Programme and are planning for this number to
increase. In parallel, CSC has engaged with iSOFT and its banks to
explore ways to underpin the long term financial stability of
iSOFT."
A spokesman for Connecting for Health said, "NHS Connecting for
Health's position in respect of this transaction is that this is a
matter for CSC.”
iSoft’s future uncertain
after more losses >>
Troubled NHS software provider up for sale
>>
iSOFT reveals £382m loss
>>
iSOFT 'irregularities' to be investigated
>>
CSC >>
iSOFT >>
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