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iSOFT endorses $0.17 per share takeover bid

iSOFT endorses $0.17 per share takeover bid

Shares in health IT company iSOFT soared 188 per cent on Monday after the company confirmed and endorsed a takeover offer from CSC

Health IT company, iSOFT (ASX:ISF), has endorsed a $0.17 per share takeover offer from US IT services group CSC.

ISF shares climbed 188.46 per cent to $0.150 during Monday's trading following the announcement.

The company has entered into an agreement with CSC's Australian subsidiary, CSC Computer Sciences Australia, to bring the offer iSOFT shareholders.

The bid is a 227 per cent premium on iSOFT's last trading price, and 209 per cent to the three-month weighted average.

But it's a far cry from the $0.54 share price from a year ago.

iSOFT's board has unanimously recommended the offer, subject to an independent expert's review. The company expects to be able to repay all its senior banking facilities and convertible notes as a result of the transaction.

An acquisition will require shareholder and regulatory approvals, including by the EU and the Foreign Investment Review Board.

iSOFT chief executive, Andrea Fiumicelli, said the acquisition would be beneficial to a converged company.

“iSOFT's electronic health record software and services, coupled with CSC's global healthcare expertise and delivery capabilities will create a very powerful force in the global healthcare market,” Fiumicelli said.

Rumours of a takeover have been spreading for days. Last Monday, iSOFT tacitly acknowledged that an offer was in play, as it extended a trading halt into a full suspension designed to prevent speculative trading.

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