16 May 2007 | Gareth Mytton
Australian health information company IBA Health has snapped up iSoft, the troubled software company.
The deal for iSoft - the company central to the government's Connecting for Health IT programme - values the software company at £140 million.
It will create one of the largest providers of information to the healthcare market. In a statement, iSoft said the deal was expected to result in annual savings of approximately £11 million, arising primarily from a reduction of overheads through the removal of duplicated infrastructure and premises.
Gary Weston, chairman and acting CEO of iSoft, said the takeover "will enable continuity on NPfIT [the NHS's National Programme for IT] on a sound footing and will establish a platform for growing the business in the future".
iSoft put itself up for sale last October, in a bid to secure its future. In the year to April 2006, it posted a pre-tax loss of £344 million.