Healthcare software firm iSoft said today (Wednesday) it has pulled back from a legal confrontation with its biggest customer, CSC, while negotiations continue on arrangements that involve CSC taking a greater role in the management of iSoft’s work on the National Programme for IT(NPfIT).
The announcement of a truce comes just two days after iSoft said it would commence legal action against CSC and on the day of a House of Commons Opposition debate on the NPfIT.
iSoft announced on Monday it had started legal action against CSC, accusing the California-based company of going behind its back to block a proposed £140m takeover from Australia’s IBA Health vital to secure its future.
On Monday iSoft accused CSC of witholding approval for the deal, having previously indicated it would grant consent, and looking at its own potential iSoft acquisition including approaching iSoft’s banks without prior notification.
ISoft now says that following talks with CSC it had decided to hold off on the action as it continues to seek CSC’s blessing for IBA’s acquisition of the company. CSC’s approval is vital for the deal to go ahead.
CSC, which is prime contractor for three of the five regions of England’s £12bn NHS IT programme is sub-contracting iSoft to deliver a next generation clinical software system called Lorenzo, currently being developed in India and two years behind schedule. The deal makes CSC iSoft’s key customer.
“Further to the announcement made by iSoft dated 1 June 2007, iSoft confirms that it is now engaged in discussions with CSC in relation to the commercial arrangements under which CSC would take a greater role in the management of iSoft’s work on the National Programme for IT. iSoft also continues to seek CSC’s consent to the change in control of iSoft that would result from the IBA Health Limited offer for iSoft.
"While these discussions are in progress, iSoft and CSC have agreed temporarily not to take further steps in court in relation to proceedings commenced on 4 June 2007 in relation to CSC withholding its consent," iSoft said in a statement today.