iSoft sues CSC over acquisition stance

iSoft is now taking legal action against CSC over its opposition to its acquisition by IBA.

iSoft is now taking legal action against CSC over its opposition to its acquisition by IBA.

Last week, both iSoft and IBA said they were considering legal action against CSC after the outsourcer said it would not consent to the acquisition.

CSC is the iSoft contract partner on a major NHS National Programme for IT contract, and IBA’s acquisition of loss-making iSoft was dependant on consent being given.

Analysts had already suggested that CSC’s lack of consent could have been linked to CSC’s own interest in acquiring iSoft, and iSoft’s announcement of legal action alludes to this.

iSoft needs to be acquired and refinanced as its faces bankruptcy in November when its finance runs out.

CSC is using iSoft’s Lorenzo records system on its NHS contracts and is helping to develop the platform, which is behind schedule.

“iSoft is concerned that CSC’s wider interests may be influencing its conduct on this matter,” said iSoft.

“CSC has been considering a possible offer for iSoft since November 2006, when it was formally given access to a data room containing information on iSoft for this purpose,” said iSoft.

It added, “More recently, iSOFT understands that CSC has also been considering a possible offer structure for iSoft that could involve the Californian based private equity fund Gores.”

iSoft further revealed, “In the week beginning 21 May 2007, CSC approached iSoft’s financing banks to explore whether it could purchase iSoft’s debt. This approach was made without the knowledge of iSoft and CSC has not, in iSoft’s view, provided a satisfactory explanation for this approach.”

iSoft and IBA consider legal action against CSC over acquisition stance >>

iSoft website >>

Comment on this article: e-mail computer.weekly@rbi.co.uk


 

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