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.
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