IBA and iSoft are considering legal action against
outsourcer CSC over its opposition to iSoft’s acquisition by
IBA.
When iSoft and IBA announced the acquisition earlier this month,
they said the deal was subject to CSC’s approval, as the outsourcer
is an iSoft partner in a major NHS outsourcing deal as
part of the National Programme for IT.
CSC objected to the deal earlier this week on unspecific
grounds, but said its decision was in the interests of its NHS
contract, which iSoft is supplying records software for.
The two suitors have now gone to the lawyers. If the deal
doesn’t go through,
loss-making iSoft faces bankruptcy in November, when its
current finance runs out. IBA has promised to re-finance iSoft as
part of the acquisition.
Gary Cohen, executive chairman of IBA, said, “Both IBA and
iSoft are seeking urgent further discussions with CSC to resolve
any issues and concerns that CSC may have, so that CSC can consent
to the merger.
“IBA and iSoft have also been advised that there is a reasonable
basis for arguing that CSC has unreasonably withheld and/or delayed
its consent.
Both IBA and iSoft are considering their rights and what further
action to take in the light of this advice,” he said.
Australia’s IBA Health buys NHS IT provider iSoft >>
iSoft's future uncertain after more losses >>
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