Channel Register

Original URL: http://www.channelregister.co.uk/2007/05/30/csc_details_iba_isoft/

CSC details iSoft objections

By John Oates
Published Wednesday 30th May 2007 11:33 GMT

CSC insists its blocking of the takeover of key health provider iSoft is in the best interests of the "successful delivery of the NHS National Programme for IT".

The company says it carried out due diligence on the impact of IBA's takeover of iSoft on the National Programme for IT (NPfIT) and decided to vote against the plan.

The statement says in full:

CSC's decision not to consent to the proposed change in control of iSoft has been governed solely by what it considers is in the best interests of achieving this goal.

CSC has engaged with iSoft concerning their potential suitors since iSoft started their process to find a buyer. Discussions and correspondence regarding IBA commenced in January, and we have continued in active dialogue with the company up to the present date. During this time, CSC has undertaken due diligence to assess the impact of the IBA transaction on NPfIT. Our ongoing discussions and correspondence with iSoft clearly reflected CSC's concerns and position, resulting in CSC confirming on 28th May, that it does not intend to consent to the IBA transaction.

CSC remains totally committed to the success of NPfIT and remains supportive of iSoft's delivery. We currently have around 100 of our own staff fully engaged with iSoft in this programme and are planning for this number to increase.

In parallel, CSC has engaged with iSoft and its banks to explore ways to underpin the long term financial stability of iSoft.

iSoft has been struggling to regain credibility after revealing an unexpected hole in its accounts last year.

In September 2006 it received a £82m government bail-out when Health Secretary Patricia Hewitt agreed to give the company early payments for NHS work.

iSoft refused to comment on this story. ®

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