iSOFT Group Limited (ASX:ISF) today announced the following to the market:
iSOFT has sold iSOFT Business Solutions (iBS), its financial management solutions business to Capita Group plc (LON:CPI) (PINK:CTAGY). The business was classified non-core as part of iSOFT's ongoing strategic review. Together with the proceeds from another smaller asset sale, Monet, a GP administration software, iSOFT has A$28.5 million available to pay fees related to the refinancing and reduce the senior bridge revolver facility in our group debt.
iSOFT Business Solutions offers financial management, purchasing and e-business solutions to customers across both public and private sectors primarily in the UK and Ireland. It generated revenue of GBP17.7 million and EBITDA of GBP5.8 million in the year to 30 June 2010. Chief Executive Officer Andrea Fiumicelli said: "While iBS is a profitable business, its key products, Oracle's e-business suite and Integra financial accounting solutions, have little overlap with iSOFT's proprietary core patient-focused healthcare IT business. Given this, and our strong desire to reduce debt, the divestment was deemed appropriate and in line with our strategy of focusing on core patient-specific health care products going forward." The business is being sold for a debt free / cash free equivalent value of GBP23.2m.
iSOFT's UK and Ireland healthcare business remains unaffected by the sale.
Debt facilities update
The size of iSOFT's bridge facility will be reduced from GBP40m (A$64.5m) to GBP23.2m (A$37.4m) in accordance with the facility documentation. This will reflect net asset sales proceeds of GBP17.7m (A$28.5m) being applied to reduce group indebtedness and Capita assuming iBS financing obligations.
About iSOFT Group Limited:
iSOFT Group Limited (ASX:ISF) is the largest health information technology company listed on the Australian Securities Exchange, and among the world’s biggest providers of advanced application solutions in modern healthcare economies.
iSOFT works with healthcare professionals to design and build software applications that answer all of the difficult questions posed by today’s healthcare delivery challenges. Our solutions act as a catalyst for change, supporting free exchange of critical information across diverse care settings and participating organisations.
Today, more than 13,000 provider organisations in about 40 countries use iSOFT’s solutions to manage patient information and drive improvements in their core processes. The group’s sustainable development is delivered through careful planning, in-depth analysis of the market, and anticipation of our clients’ evolving requirements. Our business is driven by the collective talent, experience and commitment of more than 4,700 specialists, including more than 2,700 technology and development professionals.
A global network of iSOFT subsidiaries, supported by an extensive partner network, provides substantial experience of national healthcare markets. As a result, we offer our clients comprehensive knowledge of local market requirements in terms of culture, language, working practices, regulation and organizational structure.
Kate Saunders Director, Investor Relations iSOFT Group Limited Tel: +61-2-8251-6769 Mob: +61-404-835-563 Email: firstname.lastname@example.org http://www.isofthealth.com
iSOFT Group Limited
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