1st August 2011. CSC (NYSE: CSC) today announced it has closed the acquisition of iSOFT Group Limited (ASX: ISF), one of the world’s largest providers of advanced healthcare IT solutions. The offer to iSOFT shareholders announced in April 2011, was at A$0.17 per share in cash. The deal implies an enterprise value of about $480m.
The acquisition complements and strengthens CSC’s market-leading software products and healthcare integration and services portfolio, and enhances its healthcare research and development capabilities. It also accelerates CSC’s strategic growth plan and reinforces the company as a very strong player in healthcare information technology.
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. With the expertise and experience of more than 1,000 development professionals and more than 200 clinicians, iSOFT solutions touch more than 200 million patients across five continents every day, and its systems are installed in over 8,000 hospitals and clinics. This scale has allowed iSOFT to keep abreast of the latest trends in healthcare technology and practices and translate them into innovative and practical solutions.
“The completion of this acquisition is a milestone in the expansion of our global healthcare business,” said Michael W. Laphen, CSC chairman, president and CEO. “CSC is at the forefront of emerging healthcare technologies, giving our clients access to an expanded range of innovative capabilities.”
“Joining forces with CSC is a major step forward for iSOFT, putting us in a position to accelerate the delivery of our Innovation Agenda”, said Andrea Fiumicelli, former CEO of iSOFT and newly-appointed Chief Operating Officer of CSC’s healthcare business. “By combining both organisations we have created a major force in the healthcare industry with significant opportunities for future growth through richer solutions and much enhanced access to the global market. Building on this platform, our ambition is to become one of the world’s leading healthcare IT suppliers.”
CSC Australia’s National Director for Health Services, from Lisa Pettigrew, said in a statement, “Today is an exciting day for both CSC and iSoft. The acquisition is now complete and iSoft is a CSC company. In this region we are welcoming more than 300 iSoft staff from Australia and New Zealand into the CSC family. Together, we will serve existing clients with increasing effectiveness as well as access new and exciting opportunities in emerging markets.
“The combined technical capabilities of both organisations will allow us to build innovative new solutions and put CSC at the forefront of emerging healthcare technologies. The iSoft acquisition is central to CSC’s growth strategy and a milestone in the expansion of our global healthcare business.”
“Here in Australia, the acquisition of iSoft by CSC will see the convergence of data, products, services and devices for the new eHealth and telehealth world.
iSOFT was founded in the UK 1996 as a business group within accounting group, KPMG and bought out of the Group in 1999. In 2000, iSOFT had a successful listing on the London Stock Exchange.
In October 2007, iSOFT was acquired by Australian software firm IBA Health Group. IBA first developed healthcare patient administration systems in the 1980’s and listed on the Australian stock exchange in 2000.
IBA Health Group has since changed its name to iSOFT Group to build on the goodwill associated with one of the world’s leading health IT brands, iSOFT.
With continued delays to its flagship UK National Health Service Lorenzo-based electronic patient record project and related financial difficulties, and associations with failed Australian financial services institution ALLCO, iSOFT announced on 24 March 2011 that trading in its shares would be suspended pending a corporate announcement. Subsequently on 4 April, the company announced that it was recommending a cash offer from CSC.
CSC is a global leader in providing technology-enabled business solutions and services. Headquartered in Falls Church, Va., CSC has approximately 91,000 employees and reported revenue of $16.0 billion for the 12 months ended April 1, 2011. For more information, visit the company’s website at www.csc.com.
About iSOFT Group
Prior to its acquisition by CSC, iSOFT Group Limited was the largest health information technology company listed on the Australian Securities Exchange, and among the world’s biggest providers of advanced application solutions in modern healthcare economies.
iSOFT works with healthcare professionals to design and build software applications that answer all of the difficult questions posed by today’s healthcare delivery challenges. Our solutions act as a catalyst for change, supporting free exchange of critical information across diverse care settings and participating organisations.
Today, more than 13,000 provider organisations in over 40 countries use iSOFT’s solutions to manage patient information and drive improvements in their core processes. The group’s sustainable development is delivered through careful planning, in-depth analysis of the market, and anticipation of our clients’ evolving requirements. Our business is driven by the collective talent, experience and commitment of more than 3,000 specialists in 19 countries worldwide.
A global network of iSOFT subsidiaries, supported by an extensive partner network, provides substantial experience of national healthcare markets. As a result, we offer our clients comprehensive knowledge of local market requirements in terms of culture, language, working practices, regulation and organisational structure.