AUSTRALIA'S first and only global health IT player was bought by services giant CSC overnight, in a move that will protect iSoft's intellectual resources and contract revenue.
US-based CSC will acquire all outstanding equity of iSoft Group for 17 cents a share in cash, under a court approved scheme of arrangement. The value of the offer has not been confirmed, but may be well below the expected $300 million.
The acquisition, which is subject to regulatory approvals in several countries, should be completed in 2012.
CSC said the acquisition would "complement and strengthen" its healthcare integration and services portfolio.
ISoft, listed on the Australian Stock Exchange, has been under a trading halt and voluntary suspension for more than one week now.
The British health IT media had been speculating on its buyout by its long-standing National Health Services contract partner to expand CSC's market share and safeguard the assets in iSoft's web-based platform, Lorenzo.
In its announcement overnight, CSC said it would take on iSoft's 3300 employees - from sales and R&D centres in India, Spain, Britain, Australia, New Zealand and central Europe - to expand its support capabilities for existing customers and "add a robust set of clients" in new and emerging markets.
CSC president Michael Laphen said bringing the two companies together would "further establish CSC as an innovative leader" in the health IT sector.
“Through our combined experience in healthcare delivery, complementary world-class software solutions, and capabilities in system integration, outsourcing and process management, we are forming a compelling life-cycle of services to better serve our global clients and improve patient care," Mr Laphen said.
iSoft had built a strong business, with 13,000 provider organisation customers and systems installed in more than 8000 hospitals across 40 countries, before hitting financial disaster in 2009-10.
CSC said iSoft's portfolio includes more than 1300 software developers and more than 200 clinicians, while its clinical and practice management products touched more than 200 million patients across five continents every day.
iSoft chief executive Andrea Fiumicelli said the deal was "a great development" for the company's employees, as they would be able to "continue their important work in healthcare IT while developing their careers across CSC’s global business”.
Mr Laphen said: "This will be a critical step in the expansion of our global healthcare business.
"CSC will be at the forefront of emerging healthcare technologies, giving our clients access to an expanded range of capabilities and continuing our journey of bringing the vision of a single patient record to life.”
US-based CSC will acquire all outstanding equity of iSoft Group for 17 cents a share in cash, under a court approved scheme of arrangement. The value of the offer has not been confirmed, but may be well below the expected $300 million.
The acquisition, which is subject to regulatory approvals in several countries, should be completed in 2012.
CSC said the acquisition would "complement and strengthen" its healthcare integration and services portfolio.
ISoft, listed on the Australian Stock Exchange, has been under a trading halt and voluntary suspension for more than one week now.
The British health IT media had been speculating on its buyout by its long-standing National Health Services contract partner to expand CSC's market share and safeguard the assets in iSoft's web-based platform, Lorenzo.
In its announcement overnight, CSC said it would take on iSoft's 3300 employees - from sales and R&D centres in India, Spain, Britain, Australia, New Zealand and central Europe - to expand its support capabilities for existing customers and "add a robust set of clients" in new and emerging markets.
CSC president Michael Laphen said bringing the two companies together would "further establish CSC as an innovative leader" in the health IT sector.
“Through our combined experience in healthcare delivery, complementary world-class software solutions, and capabilities in system integration, outsourcing and process management, we are forming a compelling life-cycle of services to better serve our global clients and improve patient care," Mr Laphen said.
iSoft had built a strong business, with 13,000 provider organisation customers and systems installed in more than 8000 hospitals across 40 countries, before hitting financial disaster in 2009-10.
CSC said iSoft's portfolio includes more than 1300 software developers and more than 200 clinicians, while its clinical and practice management products touched more than 200 million patients across five continents every day.
iSoft chief executive Andrea Fiumicelli said the deal was "a great development" for the company's employees, as they would be able to "continue their important work in healthcare IT while developing their careers across CSC’s global business”.
Mr Laphen said: "This will be a critical step in the expansion of our global healthcare business.
"CSC will be at the forefront of emerging healthcare technologies, giving our clients access to an expanded range of capabilities and continuing our journey of bringing the vision of a single patient record to life.”
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