Will IBA snap up iSoft?

Shares in iSoft, the troubled UK software developer which is playing a key role in the country's National Health Service's (NHS) massive IT upgrade programme, rose almost 10 percent on Friday in the UK amid speculation over its future. Australian health technology vendor IBA Health revealed on Friday morning that it was considering a bid for iSoft.

Shares in iSoft, the troubled UK software developer which is playing a key role in the country's National Health Service's (NHS) massive IT upgrade programme, rose almost 10 percent on Friday in the UK amid speculation over its future.

Australian health technology vendor IBA Health revealed on Friday morning that it was considering a bid for iSoft. Earlier in the week, it was reported that talks between iSoft and US group McKesson had faltered over problems with iSoft's Lorenzo clinical health software.

iSoft's shares started the week at AU$1.28 (UK51.75p), and had slipped to AU$1.11 (UK45p) by Thursday evening. On Friday, following IBA's announcement, they had risen to AU$1.23 (49.5p) in afternoon trading.

iSoft was sub-contracted to supply Lorenzo as part of the NHS's National Programme for IT (NPfIT). However, Accenture pulled out of the entire project last year after a leaked e-mail claimed that iSoft had "no believable plan" for the delivery of Lorenzo.

Subsequently, two separate financial investigations have been launched into iSoft, by the Financial Services Authority and the Accountancy Investigation and Disciplinary Board. The AIDB is probing the actions of several current and former executives.

iSoft confirmed on Thursday in the UK that it was "continuing to consider a number of options to determine the most appropriate route forward for the company and its shareholders", an indication that it may be keen to find a buyer.

Graeme Wearden reported for ZDNet UK from London.

Newsletters

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
See All
See All