CSC Offers $188 Million for iSoft Group, a Provider of Healthcare IT Solutions
Deal important for expansion of CSCs global healthcare business, chief exec says.
Computer Sciences Corp. (CSC) said that it has offered to purchase the outstanding share of iSoft Group Ltd., an Australian-based provider of healthcare IT solutions, for 17 cents a share or about $188 million.
CSC officials pegged the deal as important to its expansion into the global healthcare business, complementing its healthcare software and services portfolio, adding to its research and development capabilities in the segment and accelerating its growth plan in the life sciences market.
With the acquisition, CSC will inherit iSofts 3,300 employees worldwide, including its research and development operations in India, Spain, the U.K., Australia, New Zealand and Central Europe.
The transaction, which is expected to close during CSCs second fiscal quarter 2012, is subject to approval by iSofts shareholders, and Australian and European Union regulations.
In late March, financially troubled iSoft, a key supplier with CSC to the U.K. governments IT overhaul of its National Health Service (NHS) systems, suspended trading and put itself up for sale.
With the acquisition, CSC will become a prominent player in the NHS IT system with 70 acute hospital operations and a large portion of the community healthcare IT market, according to published reports.
When completed, this acquisition will be a critical step in the expansion of our global healthcare business, said Michael Laphen, CSC chairman, president and chief executive. CSC will be at the forefront of emerging healthcare technologies, giving our clients access to an expanded range of healthcare capabilities and continuing our journey of bringing the vision of a single patient record to life, he said.
Andrea Fiumicelli, iSoft chief executive, said that the acquisition is a great development for iSOFTs employees as they will have the opportunity to continue their important work in healthcare IT whilst developing their careers across CSCs global business.
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