iSoft shareholders approve IBA takeover

Shareholders of NHS software supplier iSoft have today agreed the sale of the company to Australian firm IBA.

The final hurdle to the completion of the sale will come on 29 October when a final court hearing will pave the way for iSoft shares to be de-listed the next day. If the scheme is approved the deal will be completed as of 30 October.

Gary Cohen, executive chairman of IBA Health told E-Health Insider. "The biggest hurdle we had to taking over ownership of iSoft has now been removed."

"Now the scheme has been approved by shareholders probably the only way stop this transaction now is that they have to go in and be able to convince the board that their bid is going to be able to be done by the end of October. In essence nobody else can do that now, and the [iSoft] board cannot risk the future of the company with the banking covenants expiring at the beginning of November."

He added: ""You would have to say we are in the final 100 meters dash to the finishing line, and there’s no-one else at the starting gate."

"It’s been a long journey," said Cohen.

Cohen said the take-over of iSoft had "come hard". "We must really make sure that all the efforts we have put into making this deal happen are now put into making the IBA/iSoft company a World-class company."

He said the name of the new company as of 30 October has not yet been decided but is likely to retain some use of the iSoft name, "that’s not yet been determined but is likely to utilize both the IBA and iSoft names, we will certainly not be removing the iSoft brand".

Cohen confirmed to EHI that the new company will be headquartered in Sydney, Australia but emphasized his commitment to strong local country management and the IBA’s intention to invest in infrastructure and people.

On the key question of delivery of iSoft’s late-running Lorenzo product – critical to the NHS IT programme – Cohen said that the new company would deliver. "Whatever commitments the company has given to CSC [iSoft’s prime customer] they will be met."

He said that with a contract reset underway he was unable to give details of delivery schedules but confirmed to EHI that the first phase of Lorenzo would be delivered in 2008. "We are working to a new delivery programme, called the Penfield programme… but yes we will deliver in 2008."

Full Gary Cohen interview next week

Jon Hoeksma