News article

Posted by Jon Wilcox PM | on Mon, 18/07/2011 - 11:21  1505

CSC’s iSoft acquisition green lit by Aussie Federal Court

The acquisition of iSoft is set for completion before the end of this month, after the Australian Federal Court cleared CSC’s plans to purchase all shares in the company.

The Federal Court’s order to approve the schemes of arrangement proposed under the £120m deal will come into effect tomorrow. Once CSC has acquired iSoft’s issued shares, the company will cease trading on the Australian Securities Exchange by the end of the day. The deal is then expected to close on 29 July.
Further backing was given to the proposed acquisition by the European Commission in June, which gave the deal unconditional clearance.
Earlier in July, corporate vice-president of CSC Randy Phillips, told an Australian newspaper he was confident the deal would be successful within a month, arguing the proposed acquisition is “full and fair”. Phillips also hinted the company is close to signing a Memorandum of Understanding with the Government to “calm everything down” over the National Programme for IT.
The proposed deal, confirmed in April after iSoft temporarily suspended its shares, had been opposed by former iSoft CEO Gary Cohen, who argued his company RJL Investments required four weeks’ notice before one stakeholder – OCP – could sell its stake in iSoft. The claims were later dismissed by the New South Wales Supreme Court, which described them as having no foundation.