CSC confirms iSoft buy

CSC has agreed to purchase ASX-listed healthcare software provider iSOFT Group for $0.17 per share in cash.

The acquisition was announced on Saturday. iSoft's share price had been frozen at $0.052 since March 24, and tripled to $0.16 when the market reopened this morning.

According to iSoft's announcement to the stock exchange (pdf), it had more than a billion ordinary shares on issue, implying a deal worth more than $182 million -- before accounting for options, performance rights, warrants, and convertible notes.

CSC said the buy would complement its software products, healthcare integration and services portfolio.

iSoft’s 3,300 global employees, including those from major research and development centres in India, Spain, UK, Australia, New Zealand and Central Europe, would expand CSC’s capability and add clients in new and emerging markets, the company said.

It would 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.

“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," said Andrea Fiumicelli, chief executive officer of iSoft.

CSC chairman, president and chief executive officer Michael W. Laphen said it was "forming a compelling lifecycle of services to better serve its global clients and improve patient care".

The transaction was expected to close later this year and was subject to various conditions, including, among others, iSoft shareholder approval and Australian and EU regulatory approval.