iSOFT takeover cleared by regulators

Health IT company iSOFT (ASX:ISF) has revealed that European regulators won't stand in the way of its acquisition by US-based IT services company CSC.

CSC has received unconditional clearance from the European Commission to proceed with the $0.17 per share acquisition, which iSOFT endorsed in April. The deal is worth a reported US$188 million ($178 million).

The proposed acquisition has now secured all the required regulatory consents, iSOFT said, but approval is still required from shareholders and the Australian courts.

If these approvals are granted, the deal is expected to be implemented on or around July 29.

The merger recently cleared another hurdle, with the NSW Supreme Court last month throwing out an attempt by former iSOFT CEO Gary Cohen to delay the sale.

An independent expert has found that the offer - which was at a 227% premium to the ISF closing price the day before the deal was announced - is in the best interest of shareholders.

But Cohen, who had resigned last year in the face of slumping earnings, had wanted to hold out for a better deal.

ISF shares fell 3.23% in Tuesday's trading to $0.150.

Copyright © 2011 IDG Communications, Inc.

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