ISOFT

iSOFT is an international supplier of software applications for the healthcare sector. Its products are used by more than 8,000 organisations in 27 countries for managing patient information and healthcare services.

The company, which has its headquarters in England, is heavily involved in the UK National Health Service's National Programme for IT (NPfIT), which aims to connect over 30,000 doctors in general practice to almost 300 hospitals and to give patients access to their own healthcare information.

Although iSOFT’s revenue increased by 8.4% to just over £200m in 2005-6, the company reported a pre-tax loss of £343.8m for the 12 months ended 30 April 2006, due mainly to a one-off ‘goodwill impairment’ charge of £351.4m – a non-cash adjustment related to iSOFT’s acquisition of other companies in recent years.

In August 2006, it was confirmed that the UK government watchdog, the Financial Services Authority (FSA), was investigating possible accounting irregularities at iSOFT, in relation to the years ended 30 April 2004 and 2005.

On 23rd January 2007, the sale of iSOFT started to move forward, with three companies being shortlisted as bidders for the company. The Times newspaper listed U.S. healthcare IT providers Cerner and McKesson, as well as U.S. private equity company General Atlantic as the three companies looking at a package of around £200m to purchase iSoft.

On 16th May 2007, iSOFT announced its recommendation to accept a merger with Australian company IBA Health in an all-stock deal.

On 6th June 2007, Computer_Sciences_Corporation said it was not excluding the possibility of a CSC bid for iSOFT.

On 6th July 2007, iSOFT shareholders voted in favour of the IBA Health offer.

On 20th July 2007, CompuGROUP made an eleventh hour offer. iSOFT directors considered this proposal and concluded that the offer represented better value to iSOFT shareholders than the IBA offer. More details here.

On 21st August 2007, IBA made a revised offer and the iSOFT board recommended acceptance by shareholders. CompuGROUP said in response that it would not be increasing its own offer.