iSoft shareholders approve IBA lifeline

09 Jul 2007 09:10

Ninety-seven percent of iSoft shareholders have approved the Australian company's £142m offer, as a merger moves closer

Shareholders in the beleaguered UK-based health systems provider iSoft have thrown their support behind Australian company IBA Health, almost unanimously accepting its AU$333m (£142m) lifeline.

According to a statement released over the weekend on the iSoft website, the IBA offer won the support of 97 percent of iSoft shareholders, representing 99.97 percent of the votes.

The Australian Stock Exchange (ASX) has also responded favourably to the offer, with IBA successfully raising AU$145.4 million (£62m) in a rights issue, which saw the release of over 137 million new IBA shares.

According to a statement to the ASX released on 29 June, these funds will be used to retire debt accumulated by iSoft, as well as provide the newly merged entity with working capital.

"The completion of the rights issue represents a significant step towards the completion of the merger between IBA and iSoft. We are very pleased with the strong level of support from our shareholders," said Gary Cohen, executive chairman of IBA.

"This is a powerful endorsement of IBA's international growth strategy and the proposed merger. The additional issued capital increases the company's liquidity and should encourage further institutional investment."

However, the merger remains subject to a hearing in the High Court of Justice for England and Wales, set for 25 July. So long as it is sanctioned by the court, the merger will be finalised on 30 July.

According to a company statement, the merger, if it goes ahead, will see IBA become one of the world's largest international healthcare IT systems providers, with an installed base of over 13,000 systems in Europe, the Middle East and Asia.

It will also see the ASX-listed company become a major IT provider in the UK's lucrative but complex National Programme for IT (NPfIT), originally awarded to iSoft and CSC in 2005.

Story URL: http://news.zdnet.co.uk/itmanagement/0,1000000308,39287930,00.htm