The UK-based iSoft originally agreed to a share-swap bid valued at 140m pounds ($277m) from IBA last month. But CSC, a major systems integrator for the NHS’ IT project and iSoft’s largest customer, first had to approve the deal. Instead, it blocked the transaction, leading iSoft to begin legal action against CSC. CSC earlier this month also confirmed that it was considering placing its own rival cash bid for iSoft.
But last week, Richard Granger, director-general of the NHS IT program, said that an IBA-iSoft deal is on the horizon, and the transaction would allow CSC to assume control of iSoft’s NHS software, a report in the Financial Times stated.
A statement from IBA last week included the terms of the deal and says that iSoft’s board has recommended the new deal to shareholders. The deal is still based on swapping 1.1 IBA shares for each iSoft share.
Shares of iSoft, which took a big hit after CSC blocked the initial IBA deal, jumped 5% on the news Friday to close at 46.50 pence on the London Stock Exchange.
