iSoft ‘in talks with potential buyers’

iSoft, the UK health software vendor, has announced that it will open discussions with potential bidders and partners to clarify the strategic options open to the company.

The company said this morning confirmed that it has received expressions of interest in buying the group and is in talks with potential buyers. It has appointed advisors and said that discussions “may or may not lead to an offer for the company”.

iSoft’s financial and strategic difficulties have been in headlines since January this year and there has been persistent speculation that the company would be taken over.

The news about bid offers breaks as iSoft’s board prepares to talk to its shareholders at its annual general meeting today.

Company chairman and acting chief executive John Weston said: “In recent months the Board has also received expressions of interest from a number of parties interested in acquiring iSoft or creating a strategic alliance with the Company. Those expressions have come both from financial investors and corporations with strategic interests in the healthcare market.”

The company says it has determined that the talks with potential suitors are in the best interests of shareholders. No decision on takeover has been made yet.

Weston also announced this morning that the company had updated its business plan and once again revised down its revenue predictions for the coming year of between 10 to 15 per cent.

Weston said: “Recent events, including delays to the rescheduling of deliveries under the National Programme for IT (NPfIT) and media and market comment on a number of issues surrounding iSoft, have had a negative impact on the company’s new business revenues.”

In a statement this morning said the company needed to “secure long-term capital for the business”. The company secured new financing facilities in August, but these are set to become “progressively more onerous through 2007”.

On August 25, iSoft reported a £382m annual loss but said that it has reached a funding deal with its banks, and signed a new memorandum of understanding with Computer Sciences Corporation.