Torex Plc and iSoft Plc are in advanced discussions on a merger to create a major U.K. provider of healthcare information systems. If the merger proceeds, the team of iSoft and

• They will be able to penetrate the full spectrum of the healthcare market from the GP’s surgery to the clinicians in hospitals with fully integrated software of healthcare information systems and supplementary value added services.

 

• The team will be able to provide the necessary expertise and experience to participate more aggressively and fully in the £4bn NHS Modernisation Programme. The Merged companies will be better placed to serve the requirements of the National Application Service Providers, the National Infrastructure Service Providers and the Local Service Providers in the five geographic regions in England.

 

• Union of two companies will highlight their presence also at international level. Torex with its leading market positions in Holland, Germany and Switzerland complements iSoft’s existing penetration of the Australasian, Irish, Scandinavian and Asia Pacific markets.

 

• The merger will enable both the companies to benefit from cost synergies and to capitalise on the complementary strengths of iSoft and Torex.

It remains to be seen how this deal will affect the Torex/ IBA Health relationship announced earlier. The Torex director on IBA board has already left as iSoft is regarded as a major competitor by IBA. This sounds like bad news for IBA as its previous UK assets were sold to InHealth and then onto Torex. So IBA will probably have to develop another relationship in the growing UK market. For Torex and iSoft the deal provides them with a lot of synergies and positions them well for the global market and for utilisation of their integration skills.

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