Time runs out on IBA Health bid

Australia’s IBA Health appears to have given up hopes of purchasing iSoft after it announced would not be proceeding with its AU $54.5m conditional placement after being outbid.

IBA had seemed poised to take control of iSoft Group Plc with a £140m bid, which had been accepted by the iSoft board and shareholders, but in July it was trumped by Germany’s CompuGroup who made a late £160m cash offer.

To fund its bid in May IBA Health announced that it had entered into an underwriting agreement with ABN AMRO Rothschild to raise $54.5m via a conditional placement.

The conditional placement was subject to a number of conditions, including completion of the iSoft acquisition by 13 August 2007. With the deadline to complete the deal expired, the arrangements to raise the required equity lapsed on Monday.

“As the acquisition has not completed by this time, the underwriting arrangements have lapsed and IBA Health will not be completing the equity raising of AU $54.5m,” IBA Health said in an announcement to the Australian Stock Exchange.

One close observer of IBA Health told E-Health Insider that there may yet be a deal to be done on iSoft’s Australian and East Asian operations. The source speculated that with CompuGroup’s clear focus on Europe it may look for a buyer for iSoft’s operations outside Europe.