The short life of healthcare software vendor ISoft looks likely to come to an end after the company said takeover discussions are ‘well advanced’ with several parties, both trade and private equity. The Banbury, UK-based company also said revenue for the year to April 30 will be at the upper end of its forecast range of 171 to 181m ($341.7m to $361.7m).
ISoft, which has been dogged by revenue-recognition problems and delayed software, said the takeover discussions have taken longer to conclude than it originally expected because of the need for extensive consultation in respect of its role in the National Programme for IT in England. It said it would make a statement about the outcome as soon as was appropriate.
Australian healthcare applications provider IBA Health is one of the favorites to acquire the company, but the prospect of a substantial revenue flow from the project to equip the UK’s National Health Service with a modern IT infrastructure has also attracted the private-equity sector.
ISoft believes it has sufficient headroom to continue operations as normal on November 14 when its existing banking facilities are due for renewal. Given progress on the acquisition front, its cash needs will be someone else’s responsibility by that time.