iSoft, the National Health Service (NHS) software supplier has said it has agreed terms of a sale in the region of £140 million to rival IBA.
Australian healthcare software rival, IBA will pick up the work of the troubled NHS supplier following financial scandals that hit the company last year and led to delays in delivery of its Lorenzo software, key to the £12-billion National Programme for IT (NPfIT) NHS IT project.
The Australian firm first revealed it was interested in acquiring iSoft earlier this year. Ironically, iSoft partner, Torex – which is also currently mired in financial scandal after an expensive, two-year acquisition spree – used to be a distributor for rival, IBA in the UK before the two firms merged in 2003. At the time an Office of Fair Trading investigation instigated as a result of a complaint brought by IBA against the merger was rejected, allowing it to go ahead.
Meanwhile, the software firm is still under investigation by the financial services watchdog, the FSA and the Accountancy Investigation and Disciplinary Board as result of discrepancies revealed last year in its accounting practices, which led to it posting a £14.6 million loss.
Connecting for Health, the project management for the NPfIT had made no comment on how the acquisition would affect its use of iSoft's clinical software, Lorenzo at time of writing.