IBA Health Eyes off iSOFT

February 19, 2007: Australian health solutions provider IBA Health, has confirmed its intention to consider making an all-share offer for the UK based iSOFT Group.

“IBA Health Limited confirms that it is in discussion with iSOFT Group which may or may not lead to an all-share recommended offer for the company being made by IBA Health,” the company revealed in a statement on their website.

“IBA also confirms that it is in discussions with certain financial institutions to obtain the funding which would be required should as offer for the Company be made by IBA health.”

IBA Health provides real-time information across healthcare to connect providers, payers, patients and communities. The company was recently initiated into HP’s elite ISV Club and has moved up the ranks to become Australia’s largest ASX listed eHealth company. A recent win in China to work on the Shanghai People’s Health Information Technology project has confirmed IBA Health’s status as a now international vendor.

The funding IBA is chasing for the deal would need to be enough to refinance iSoft. The British company has been operating at a loss and has also faced a number of major setbacks in fulfilling its contracts. Last year, the Victorian Health Minister defended the Victorian Government’s handling over a $22.5 million HealthSmart contract awarded to iSoft, after a number of reports claimed the Victorian Department of Human Serves has entered into ‘inappropriate social contact' with the bidder prior to the contract being awarded.

The UK’s Financial Services Authority is also investigating iSoft after its accounts revealed irregularities between 2003 and 2004.

Shares in iSoft have risen 10 percent since the IBA announcement.

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