Outsourcer, CSC has acquired all of the outstanding equity of healthcare solutions provider, iSoft Group, via a court-approved scheme of arrangement.
It has offered iSoft shareholders $0.17 per share in cash. The acquisition is subject to iSoft shareholder, and certain Australian and European regulatory approvals.
CSC president and CEO, Gavin Larkings, acknowledged iSoft had experienced financial issues, but said it managed to maintain a share price of $0.60 in the past, and that $0.17 per share was a fair offer.
Over the past year, iSoft established a range of plans to address their financial woes, which CSC plans to continue.
At this point in time, Larkings said it hasn't had any discussions with major shareholders and it was still too early to discuss what it would do in terms of headcount and whether or not it will retain iSoft branding or bring it under the CSC fold.
"We'll give announcements as the plan progresses. We don't want to prejudice what iSoft shareholders still have to do," CSC national director of health services, Lisa Pettigrew, said.
"We intend to honour the existing contracts that iSoft have, and it's too early for us to comment in detail on the manner in which we'll go through integration.
"Our decision to acquire iSoft is independent of any specific transaction, client or contact. It's a strategic acquisition that's in line with our global expansion plans."
Speculation has been mounting that CSC would purchase the healthcare company after it was placed into a trading halt on the ASX on March 24.
The acquisition will complement and strengthen CSC’s healthcare play, fitting into its healthcare integration and services portfolio, as well as its research and development capabilities. It will also accelerate CSC’s strategic growth plan within the life sciences market.
It expects to bed down the transaction by the second quarter of the 2012 financial year.
The acquisition involves iSoft’s 3,300 global employees including staff across major research and development centers in India, Spain, UK, Australia, New Zealand and Central Europe.
“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,” CSC chairman, president and CEO, Michael Laphen, said in a statement.
iSoft CEO, Andrea Fiumicelli, said iSoft’’s Electronic Health Record software and services, coupled with CSC’s global healthcare expertise and delivery capabilities, would create a very powerful force in the global healthcare market.
“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,” Fiumicelli said.
More than 13,000 healthcare providers and governments in 40 countries use iSoft’s e-health software solutions to manage patient information and core processes. Its systems are installed in more than 8000 hospitals and clinics.
Perella Weinberg Partners LP is acting as financial advisor to CSC and Jones Day as the legal advisor.
