Troubled National Health Service (NHS) software supplier iSoft has signalled that its £140 million sale to Australian software company IBA is back on the cards, following "constructive" talks with lead contractor CSC.

The iSoft sale had been blocked by CSC http://www.cio.co.uk/concern/managers/news/index.cfm?articleid=1371, the lead contractor in three out of five regions for the NHS's £12.4 billion National Programme for IT (NPfIT), because it firm felt the deal would not support successful delivery of iSoft's Lorenzo care records system – a core part of NPfIT.

CSC's move prompted iSoft to launch legal action http://www.cio.co.uk/concern/managers/news/index.cfm?articleid=1393 against it, but this was put on ice when the two companies began talks about commercial arrangements to give CSC greater management control of Lorenzo's development.

But in a new "scheme of arrangement" issued by iSoft to its shareholders, the software firm indicated that it was moving forward with the sale following positive indications from CSC.

The discussions http://www.cio.co.uk/concern/managers/news/index.cfm?articleid=1424 begun on June 6 "continue to be constructive", it said. "As a result, the iSoft directors believe that there is a reasonable likelihood that CSC will consent to the change of control of iSoft and that the [IBA] offer continues to represent the best route forward."