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