Troubled health provider iSoft is in talks with Australian company IBA Health about a possible takeover, but says it is still looking at other options.

A spokesman for iSoft told The Reg: "We are in dialogue with IBA but it is one of a number options we are considering."

IBA Health issued a statement yesterday which said: "IBA Health Limited (ASX- IBA) confirms that it is in discussions with iSOFT Group plc (the "Company"), which may or may not lead to an all-share recommended offer for the Company being made by IBA Health. IBA Health also confirms that it is in discussions with certain financial institutions to obtain the funding which would be required should an offer for the Company be made by IBA Health."

iSoft is currently being investigated by the Financial Services Authority (FSA). In August last year the company revealed a massive loss for the year. The FSA is investigating irregularities in the company's accounts for 2003 and 2004. The firm plays a central role in the National Programme for IT - which aims to improve NHS IT systems.

iSoft shares rose 10 per cent this morning on the news, but those of IBA Health fell some six per cent. ®

• NHS IT loses its interim head (10 April 2008)
• iSoft takeover likely in days, not weeks (14 June 2007)
• iSoft sets lawyers on CSC (4 June 2007)
• Why does CSC want to stop the rescue of iSoft? (1 June 2007)
• CSC details iSoft objections (30 May 2007)
• iSoft rescue package in jeopardy (29 May 2007)
• Aussie bid for iSoft approved (16 May 2007)
• Aussies make offer for iSoft (8 May 2007)
• Sickly NHS provider still seeking saviour (30 April 2007)
• Accounting probe costs iSoft its co-founder (28 March 2007)
• Updated iSoft in critical condition as NHS trusts seek alternatives (5 March 2007)
• Torex Retail fraud investigation stool pigeon sings (2 February 2007)
• Torex Retail calls in help to patch accounts (29 January 2007)
• iSoft shares up on news of six month loss (11 December 2006)
• iSoft hit with another investigation (25 October 2006)
• iSoft predicts fall in revenue and offers itself for sale (17 October 2006)
• iSoft costing Staffs hospital dear (16 October 2006)
• Accenture escapes £1bn penalty for NHS walk-out (29 September 2006)