CSC has signed an agreement to acquire all of the outstanding equity of iSOFT Group Limited, one of the world’s largest providers of advanced healthcare IT solutions, by way of a court-approved scheme of arrangement. SCS said the acquisition will accelerate CSC’s strategic growth plan in the Life Sciences market and reinforce the company as a very strong player in healthcare information technology.

Troubled healthcare software firm iSoft was the subcontractor to key National Programme for IT (NPfIT) suppliers Accenture and CSC. Protracted delays in rolling out its Lorenzo platform eventually led to Accenture abandoning most of its £2bn in NPfIT contracts. CSC, the lead contractor in three out of five regions for the NHS’s £12.4 billion IT overhaul, was left as iSoft’s main partner in the massive health IT project.

Most recently, CSC and iSoft failed to meet a deadline in March for installing Lorenzo at the Pennine Acute Hospital Trust and have been unable to receive key payments from the Department of Health (DoH).

The offer to iSOFT shareholders is at A$0.17 per share in cash, putting the value of the company at £120 million. Closing of the transaction is expected during CSC’s Q2FY12, and is subject to various conditions, including, among others, iSOFT shareholder approval and certain Australian and EU regulatory approvals.

Adding iSOFT’s 3,300 global employees including those from major research and development centers in India, Spain, UK, Australia, New Zealand and Central Europe, will expand CSC’s capability to support existing customers, develop more innovative solutions, and add a robust set of clients in new and emerging markets.

“The combination of these companies will further establish CSC as an innovative leader in global healthcare IT,” said Michael W. Laphen, CSC chairman, president and chief executive officer. “Through our combined experience in global healthcare delivery, complementary world-class healthcare software solutions, and enhanced capabilities in system integration, outsourcing and process management, we are forming a compelling lifecycle of services to better serve our global clients and improve patient care.”

More than 13,000 healthcare providers and governments in 40 countries use iSOFT’s e-health software solutions to manage patient information and drive improvements in their core processes. With the expertise and experience of more than 1,300 development professionals and more than 200 clinicians, iSOFT solutions touch more than 200 million patients across five continents every day, and its systems are installed in more than 8,000 hospitals and clinics. This scale has allowed iSOFT to keep abreast of the latest trends in healthcare technology and practices and translate them into innovative and practical solutions.

“iSOFT’s Electronic Health Record software and services, coupled with CSC’s global healthcare expertise and delivery capabilities, will create a very powerful force in the global healthcare market to enhance the provision of integrated care,” said Andrea Fiumicelli, chief executive officer of iSOFT. “This is a great development for iSOFT’s employees as they will have the opportunity to continue their important work in healthcare IT whilst developing their careers across CSC’s global business.”

“When completed, this acquisition 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 healthcare capabilities and continuing our journey of bringing the vision of a single patient record to life,” Laphen added.

Perella Weinberg Partners LP is acting as financial advisor to CSC and Jones Day is acting as legal advisor to CSC.

Source:  Top-Consultant

CSC has named Nick Hopkinson director of Cybersecurity within its U.K. business. Hopkinson will lead the UK cybersecurity practice whose mission is to reduce client risks and protect their enterprises from the increase in cyber attacks.

“Our clients want to be confident that their information and network systems are protected,” said Samuel S. Visner, CSC’s vice president and global lead executive for Cybersecurity. “Under Nick’s leadership, CSC will work closely with its clients to develop or improve their technology roadmaps, mitigate their security risks, and ensure their enterprise is protected.”

Before joining CSC, Hopkinson spent much of his career in the U.K. intelligence and security community. He was responsible for significant operations and policy delivery functions before becoming director of programs, and then Chief Information Officer of Government Communications Headquarters (GCHQ).

For six years he was a member of the GCHQ Board, where he led major programs that transformed the operational technology base of the organization and modernized the information technology services function. Hopkinson successfully introduced several new industry partners to drive technology and IT delivery, and supplied significant improvements in the capability and performance of the business.

As CIO for GCHQ, he operated at the most senior levels in the UK government in the defense and security sectors, as well as in the wider government CIO community, where he had overall responsibility for the GCHQ contribution and a number of programs and projects in other government departments. In his most recent role, as director general for Information Security and Assurance, Hopkinson led the development of a new Information Assurance Strategy for CESG, an organization that provides security and risk certifications and assessments for UK government departments and other private sector organizations. In addition, he made significant contributions to the development of the broader government cybersecurity and information assurance strategies.

Source:  Top-Consultant

CSC has been ranked in the top 100 greenest companies in America in the 2010 Newsweek Green Rankings. This second annual list provides an environmental ranking of the 500 largest publicly traded companies in America, as measured by revenue, market capitalization, and number of employees.

“CSC is honored to be recognized by Newsweek as one of America’s greenest companies,” said Susan Pullin, vice president of Corporate Responsibility and Analyst Relations, CSC. “We are committed to investing in environmental sustainability services and Green initiatives that benefit our clients, our company and the world around us.”

Newsweek’s study of the top greenest companies evaluated candidates based on their environmental footprint and management of that footprint (including policies and strategies), their green policies and the company’s reputation among environmental experts. To produce the 2010 Green Rankings, Newsweek collaborated with MSCI ESG Research — a leading source of environmental, social and governance ratings — which served as the lead research organization; Trucost, which specializes in quantitative measurements of environmental performance; CorporateRegister.com, the world’s largest online directory of social responsibility, sustainability and environmental reports; and editorial partner ASAP Media.

Source:  Top-C0nsultant news

CSC has been selected as the 2010 “Best Technology Vendor” by Reactions magazine. The company has won the award – one of the publication’s top Global Awards – each year since the category was added in 2008. The presentation took place on Sept. 30 in New York.

Reactions, a leading international insurance magazine published in the United Kingdom, through its Global Awards program identifies the organizations, deals, initiatives and industry professionals that are performing ahead of the competition.

“CSC won because of its impressive reach in the insurance industry and quality of the service it delivers,” said Michael Loney, editor of Reactions. “We congratulate CSC on its continued recognition as ‘Best Technology Vendor’ and acknowledge the outstanding accomplishments of all of this year’s award recipients.”

“Our solutions are driven by deep industry experience that enhances relevance and value, and our global delivery framework ensures consistent systems and processes worldwide,” said Ray August, president of CSC’s Financial Services Group. “This award underscores our commitment to helping carriers and reinsurers around the world become more agile, provide better customer service and support virtually all types of insurance products.”

CSC’s technology platforms and financial services applications are used by two thirds of the world’s top 50 insurers and nearly half of FORTUNE’s global 500 financial services companies. In addition, half of the world’s reinsurers use CSC reinsurance solutions.

Source:  Top-Consultant

CSC reported first quarter fiscal 2011 revenue of $3.94 billion and fully diluted earnings per share (EPS) of $0.91 compared to first quarter fiscal 2010 Revenue of $3.90 billion and EPS of $0.85.

Commenting on the results, CSC Chairman and Chief Executive Officer, Michael Laphen said, “I am pleased with our operational improvements and the corresponding financial results, particularly the margin and cash flow performance. We remain focused on delivering positive results while navigating a still uncertain macro economic environment.”

Across the three lines of business, new business awards for the quarter were $3.2 billion. North American Public Sector (NPS) contributed approximately $1.2 billion, Business Solutions & Services (BSS) reported $0.8 billion, and Managed Services Sector (MSS) closed $1.2 billion of new business.

“I am encouraged by the size and quality of our current pipeline,” said Laphen. “We are seeing increased demand emerging from some regions and within some industries. Our strategic targets of Cloud, Cyber and Healthcare, as well as network management are all indicating positive signs. Although our businesses are impacted by the overall sluggish recovery and, to a lesser extent government spending, we have a very robust backlog and I remain optimistic that we will realize meaningful growth beginning in the second half of our fiscal year.”

CSC reconfirmed guidance for the full year as follows: Bookings in excess of $18 billion, revenue in the range of $16.8 billion to $17.2 billion, operating margin between 9% and 9.25%, EPS in the $5.30 to $5.40 range, and Free Cash Flow in excess of 90% of net income attributable to CSC common shareholders.

For the quarter, NPS Revenue was $1.55 billion (up 2.2% from first quarter last year), MSS Revenue was $1.60 billion (up 2.2% from first quarter last year) and BSS Revenue was $0.82 billion (down 2% from first quarter last year).

Source:  Top-Consultant News

CSC announced a 10-year extension to its business process outsourcing (BPO) services agreement with Swiss Re, one of the world’s largest and most diversified reinsurers. Under the extension, CSC will continue to provide industry-leading administration for Swiss Re’s direct life insurance business through July 2020.

Building on a relationship that began in 1995, CSC supports Swiss Re’s Admin Re business unit in the United States, one of the highest growth areas for Swiss Re’s global life and health segment. Through its Admin Re programs, Swiss Re provides capital and risk solutions to primary life insurance carriers by acquiring blocks of life insurance business, enabling these primary insurers to release capital and gain access to future profit streams from in-force portfolios. This strategic renewal solidifies the global market leadership and commitment of both organizations in providing cost-efficient alternatives for life insurance policy administration.

To strengthen the combined offering, CSC and Swiss Re have jointly outlined innovation strategies to drive even greater efficiencies in administration, improved customer service and enhanced system alignment across the business. As part of this initiative, the team will be incorporating new features of CSC’s CyberLife, Customer Service Accelerator and Claims Management Accelerator software to provide additional e-delivery and self-service capabilities and enhancements to claims processing.

“Having worked with CSC for 15 years, we know the team understands our unique strategic goals,” said Donna Kinnaird, president, Swiss Re Life & Health America Inc. “Our renewed agreement positions Swiss Re to continue pursuing Admin Re acquisition opportunities and to benefit from CSC’s insurance processing expertise and system capabilities.”

“We continue to help Swiss Re achieve its business, service and cost goals through unparalleled levels of industry service and competitive pricing,” said Michael W. Risley, president of CSC’s Life Insurance and Annuity Division. “Insurers of all sizes can benefit from our dual focus on technology advancements and insurance industry expertise, which enable continuous process improvements and long-term cost performance.”

In December 2003, Swiss Re and CSC entered into a 10-year BPO arrangement that surpassed industry benchmarks for service capability and quality. To date, Swiss Re has successfully acquired and transitioned more than 40 US life insurance blocks into CSC’s Life and Annuity BPO operations for full policy and claims administration.

Source:  Top-Consultant News

New business awards of $4.3 billion for the quarter and $19.2 billion for the year, an annual increase of 18.5% and compares favorably to the latest guidance of $19 billion.

CSC reported fourth quarter fiscal 2010 revenue of $4.2 billion and fully diluted earnings per share (EPS) of $1.66 compared to fourth quarter fiscal 2009 revenue of $4.1 billion and EPS of $2.51 (which included $1.11 of net favorable tax audit settlements).

For the full year, revenue was $16.1 billion (compared to $16.7 billion for the previous year), and EPS was $5.28 (compared to $7.31 for the previous year which included a total of $3.36 of net favorable tax audit settlements).

Commenting on the results, CSC Chairman and Chief Executive Officer Michael Laphen said, “We had a solid quarter and an outstanding year marked by robust cash generation, further increased profitability, and a significantly strengthened balance sheet. I am especially pleased with our success in capturing new business with another $4.3 billion of new awards in the quarter bringing our total year result to $19.2 billion, a record for CSC and $3 billion above last year.”

The breakdown of the $4.3 billion of new business awards in the quarter by our three lines of business is as follows: North American Public Sector (NPS) contributed $1.4 billion ($7.1 billion for the full year), Business Solutions and Services (BSS) reported $0.8 billion ($3.4 billion for the full year), and Managed Services Sector (MSS) closed $2.1 billion of new business ($8.7 billion for the full year).

Business Outlook

“Our fourth quarter revenue reflects a sequential increase of 7%, and that, coupled with the $19.2 billion of new business awards, positions us for a return to growth in Fiscal Year 2011,” said Laphen. “As the world economies gradually improve, our financial strength, market position, and innovative solutions will stimulate expansion across our three lines of business.”

For fiscal year 2011, the company anticipates bookings in excess of $18 billion, revenue in the range of $16.8 billion to $17.2 billion (an increase of 4% to 7%) and operating margin between 9% and 9.25%, representing a further increase of 25 to 50 basis points. EPS is projected to be in the $5.30 to $5.40 range, representing an increase of approximately 20% when normalized for tax rate. Free Cash Flow is forecast to be in excess of 90% of net income attributable to CSC common shareholders.

Source: Top-Consultant

CSC has updated its financial guidance for the year to 2 April, showing significant increases in new business and profitability, despite an ongoing struggle to honour the contracts it holds as part of the £12 billion NHS IT overhaul. Ahead of releasing its fourth-quarter and full year results on 20 May, CSC has reported that new business wins in the year to 2 April reached $19 billion (£12.4 billion), up from previous guidance of $17-18 billion. Earnings per share are expected to come in between $5.05 and $5.15, up from previous indications of $4.80-5.00. The company is forecasting revenue of $16-16.5 billion, in line with previous guidance, and a respectable margin of 8.6-8.8%.

But although CSC’s global forecast is good, the company appears to be struggling with its NHS contracts in the UK.

CSC is the largest supplier to the £12 billion NHS IT programme, having added regional contracts initially won by Accenture and Fujitsu Services to its own initial win. But according to a report in the Financial Times, its recent failure to meet a March deadline to get systems running smoothly in a large, acute hospital in the north-west may mean a review of CSC’s work with hospitals or even cancellation of its contract to install such systems.

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Significant increases in new business awards and profitability.

CSC updated its financial guidance for the fiscal year ending April 2, 2010, saying that it now expects new business awards of approximately $19 billion versus prior guidance in the range of $17 – $18 billion.

Revenue is expected to be in the range of $16 – $16.5 billion, consistent with prior guidance, while earnings per share are now forecasted in a range of $5.05 – $5.15 versus prior guidance of $4.80 – $5.00.

CSC expects to release its fourth quarter and audited fiscal year results on May 20, 2010.

Source: Top-Consultant

CSC has signed an agreement with the UK’s Royal Mail Group to provide cloud computing information technology (IT) services. The new agreement expands the company’s current contract signed with Royal Mail Group in 2003 to maintain its desktop computers and manage and develop its servers, mainframes and IT processes.

The new contract is an industry first, with CSC being the first Microsoft partner to lead and win a cloud computing services agreement of this scale. Under terms of the contract, CSC will provide Royal Mail Group’s 30,000 employees with access to new IT services using Microsoft’s Business Productivity Online Suite (BPOS), part of Microsoft Online Services. CSC will also provide first line helpdesk support.

CSC’s cloud services are designed to help businesses easily and securely adopt cloud computing solutions, allowing them to reduce the costs of managing and maintaining business systems while giving them access to the latest Microsoft Online Services including Microsoft Exchange Online, Microsoft SharePoint Online, Microsoft Office Communications Online and Microsoft Office Live Meeting.

Royal Mail Group’s Head of Technology Service Delivery, Carol Olney, said: “This deal forms part of Royal Mail’s drive to invest in new technology to improve efficiency and customer service.”

“The Microsoft suite will give people across Royal Mail Group the tools they need to do their jobs more effectively, enabling our business units to collaborate with each other, partners and other external organisations more freely, easily and securely while securing cost savings.”

“We are pleased to expand our relationship with Royal Mail Group and deliver the benefits of cloud services,” said Kevin Brown, vice president and chief operating officer of CSC in the UK. “Working collaboratively with Microsoft, we look forward to helping Royal Mail Group lower operational costs and providing more flexibility in the management of its IT systems.”

“Public and private sector organizations, such as Royal Mail Group, are moving their critical applications to Microsoft Online Services in increasing numbers,” said Ron Markezich, corporate vice president at Microsoft. “Partners like CSC are important in helping our customers take full advantage of the enterprise-grade capabilities and flexibility Microsoft’s cloud applications deliver.”

Source: Top-Consultant