BusinessCompany NewsAustralian rival lining up bid for iSoft

Australian rival lining up bid for iSoft

IBA Health at the negotiation table with struggling company about a possible all-share offer which could eventually result in a takeover bid

Health information corporate
 IBA Health has
emerged as a possible white knight for
iSoft, the struggling NHS
software supplier. The Australian rival announced that it has been in talks with
iSoft about an all-share offer. 

IBA Health remained cautious as it released a statement to the Australian
stock exchange, but it confirmed that it was involved in discussions, ‘which may
or may not lead to an all-share recommended offer for the company’.

It added: ‘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.’

‘This funding would refinance the company’s existing debt facilities and
provide adequate working capital for the ongoing requirements of the enlarged
group.’

Earlier this week talks on an offer for iSoft from the US group McKesson
reportedly stalled over iSoft’s severely delayed Lorenzo software, delivery of
which is part-controlled by the US consultancy Computer Sciences Corp (CSC),The
Guardian reported.

After being paid upfront for work it is now undertaking, the company’s
working capital is under strain. There will be no cash coming in until May 2008.
Its significant debt repayments were raised last month and will increase again
at the end of March. 

This week, iSoft said it is continuing to consider a number of options to
determine the most appropriate route forward for the company and its
shareholders.’

Related links:

Sir Digby defends part in iSoft
furore
 

Backers sought for beleaguered iSoft 

iSoft red-flagged by investor group

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