another offer coming?

CSC of US buys healthcare software firm iSoft for $188m Katherine Jimenez From: The Australian April 04,

?US IT services group Computer Sciences Corporation has signed an agreement to buy struggling healthcare software company iSoft for about $188 million.

A scheme implementation agreement to buy all outstanding equity of iSoft was signed in London late last week with the full support of iSoft's board, in the absence of a superior bid.

Under the scheme of arrangement, CSC will offer iSoft shareholders 17c a share in cash, more than three times the 5.2c iSoft's shares closed at on Thursday, when the company went into a trading halt.

The deal implies an enterprise value of about $480m.

If shareholder and regulatory approvals are granted, CSC has agreed to immediately pay iSoft's bank debt of about $260m and will also pay out a convertible note, estimated at $40m, to major shareholder Oceania Capital Partners (OCP, formerly Allco Equity Partners).

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The big question is whether iSoft founder Gary Cohen, who resigned last year, will make a separate play for the company.

He has pre-emptive rights over OCP's shares in iSoft, which as at February 25 stood at 27.7 per cent.

But sources point to the fact that OCP managing director Robert Moran and non-executive chairman Ian Tsicalas also sit on the iSoft board, which unanimously supported the CSC offer.

It is understood that while iSoft was reviewing its options, interest in the company was shown by several other predators, possibly including interests associated with Mr Cohen.

Those parties also had access to the company's data room.

ISoft is one of the world's biggest healthcare IT companies.

More than 13,000 healthcare providers and governments in 40 countries use its e-health software to manage patient information.

Its systems are installed in more than 8000 hospitals and clinics.

Chief executive 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 to enhance the provision of integrated care.

The acquisition is expected to strengthen CSC's market-leading software products, healthcare integration and services portfolio, as well as reinforce the group as a strong player in healthcare information technology.

"The combination of these companies will further establish CSC as an innovative leader in global healthcare IT," CSC chairman Michael W. Laphen said.

He said when completed, the acquisition would be "a critical step" in the expansion of CSC's global healthcare business and place it at the "forefront of emerging healthcare technologies".