Late last month, CSC used its position as iSoft’s biggest customer to block an all-share bid from IBA which valued the troubled software company at approximately 140m pounds ($277.5m). In response, iSoft began legal proceedings against CSC, claiming the IT services giant was unlawfully withholding its consent.
The issue now appears to have been resolved, with CSC giving written consent to the merger, and iSoft, in turn, ending its legal challenge. The moves came after iSoft agreed to give CSC control of the development of software for the UK National Health Services IT upgrade project.
In a statement, iSoft’s acting CEO John Weston said: The new management structure will streamline the processes to ensure the delivery to the NHS of a quality product on time. It aligns both management teams with the highest priority of delivering the [NHS upgrade].
iSoft will retain the intellectual property rights to Lorenzo, the flagship system which allows clinicians and hospital administrators to manage patient lists, record clinical data, and distribute that data to other care providers.
iSoft will now seek approval from its shareholders for the deal with IBA to go ahead. A meeting is scheduled for July 6.
