CSC opens gate to iSoft takeover
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Posted in IT Channel, 18th June 2007 11:41 GMT
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CSC is no longer blocking the takeover of iSoft by Aussie firm IBA Health.
CSC is the main contractor using iSoft's products and therefore had a right to object to management changes. iSoft is struggling with an investigation into alleged accountancy problems, which was making its financial backers nervous. The takeover by IBA Health looked like just the tonic it required, until CSC refused to give consent. CSC was considering its own cash offer for the firm.
In a statement, iSoft said: "CSC has also indicated in writing to iSoft that it consents to the change in control of iSoft that will result from the merger of iSoft and IBA. Accordingly, iSoft has agreed to terminate legal proceedings regarding CSC withholding consent."
Agreement, or at least a legally-binding "heads of terms", was signed this morning. iSoft and CSC agreed to integrate their teams under CSC's leadership, but staff will remain in iSoft's employ. iSoft keeps intellectual property rights to flagship product LORENZO but CSC will take responsibility for the code streams of two other iSoft products - i.Patient Manager and i.Integration Engine.
The next necessary step is approval from iSoft's shareholders. There will be an extraordinary general meeting on 6 July.
iSoft chairman John Weston said: "I firmly believe that these new arrangements with CSC represent an excellent outcome for both the NHS and for iSoft. The new management structure will streamline the processes to ensure the delivery to the NHS of a quality product on time."
iSoft's statement is here. ®
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