iSoft sale at advanced stage
NHS software company iSoft today conceded that talks about the future ownership of the firm were taking longer than expected to conclude.
While discussions with several parties – both trade and private equity firms - are well advanced, iSoft said the process had been delayed because of the need for extensive consultation in respect of its NHS IT work.
The talks, which centre on the acquisition of iSoft or the sale of a significant stake, will enable the firm to secure its long-term financial future.
iSoft struck short-term banking arrangements in August, but the facilities are due to expire in November and will generate progressively higher levels of interest payments until then.
Shares in iSoft have been on an upward path since October, when the beleaguered firm revealed that it had been approached by financial and trade buyers that were keen to buy the company, take a stake or form an alliance.
The company was earlier plunged into crisis after delays to the NHS contract to provide a centralised database of medical records, coupled with a series of profits warnings and the discovery of accounting irregularities.
A number of buyers have been linked to iSoft including US private equity business General Atlantic Healthcare, US drugs distribution firm McKesson and the Australian software firm IBA Health. It is thought that iSoft could be worth in region of £200m (€292.9m).
The sale process also requires the support of Computer Sciences Corporation, the firm responsible for subcontracting NHS work to iSoft.
