CSC has signed an agreement to acquire the global operations of iSoft for £117m ($188m), in a deal it says will accelerate the growth of the company’s global healthcare business.
CSC will acquire all of the outstanding equity of Australian stock market listed iSoft Group Ltd. Isoft is a key sub-contractor to CSC under the multi-billion NHS National Programme for IT.
CSC says the deal, which is expected to close at the end of September, will complement and strengthen CSC’s software products and healthcare integration and services portfolio”, while enhancing its healthcare research and development capabilities.
The deal will also accelerate CSC’s strategic growth plan in the Life Sciences market and reinforce the company as a very strong player in healthcare information technology.
“The combination of these companies will further establish CSC as an innovative leader in global healthcare IT,” said Michael 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.”
Isoft has 3,300 global employees including 600 in the UK. The company also has major research and development centres in India, Spain, UK, Australia, New Zealand and Central Europe.
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.
"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.
He added: “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.”
The offer to iSoft shareholders is at A$0.17 per share in cash.