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.
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