Monday, March 28, 2011

It Looks Like iSoft Has Had It! Pity About That!

The following appeared this morning after an ASX announcement before market open this morning.

iSoft extends trading halt on buyout talk

  • Karen Dearne
  • From: Australian IT
  • March 28, 2011 9:44AM

SPECULATION that Australian health IT leader iSoft is on the market has intensified, with the company extending a two-day trading halt last week with a voluntary suspension until next Monday.

The trading halt was requested on Thursday pending a company announcement on its strategic review this morning.

Instead, the directors have told the Australian Stock Exchange the "current status and the proposals received as part of the review process, including relating to a potential change of control, are not sufficiently advanced to permit the disclosure of complete information to the market".

More here:

http://www.theaustralian.com.au/australian-it/isoft-extends-trading-halt-on-buyout-talk/story-e6frgakx-1226029214374

The press release is here:

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9ODcyMTR8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1

This looks very much like the end of iSoft as a stand-alone corporate entity.

If I had iSoft software operational in my organisation (eg HealthSMART in Victoria or the Macquarie Private Hospital in NSW) I would be checking contracts etc. pretty carefully!

It is a bit sad for OZ to loose its only major listed Health IT Company. The rest Global Health (ASX:GLH) and Promedicus (ASX:PME) are either unprofitable sinecures for their directors (GLH) or really so tiny that is it hard to see them making a major impact (PME). Anyone who remembers ICS will now know they have got out of the business.

HCN is, of course, now part or Primary Health Care (ASX:PRY) and it has been struggling with pathology price cuts in the last year or two.

The other significant health stocks really have only minimal Health IT exposure. (Sonic, Resmed, CSL)

The only reason to buy iSoft will be for the legacy revenue streams from maintenance. Rumours are CSC in the UK is interested! We shall see.

David.

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