iSOFT faces the final curtain

Australian healthcare application provider iSOFT, a key supplier to the UK’s erstwhile National Programme for IT in the NHS (see the HotViews archive for the whole saga), is all set to become part of CSC by the end of the month. The Federal Court of Australia granted final approval for CSC’s acquisition today; iSOFT’s shares will cease trading tomorrow and the deal is due to complete on or about the 29th July. With CSC’s future in NPfIT still uncertain (see NAO delivers damning verdict on NPfIT), I can’t help seeing the acquisition of iSOFT, its troubled subcontractor on the programme, as a pretty big gamble. Despite CSC’s global healthcare ambitions and some synergies between the two companies, the main rationale for the acquisition is to help CSC deliver on its still considerable NPfIT commitments. Should the government pluck up the courage to cancel or curtail those contracts, then the rationale for the deal looks much shakier.