High flying Manchester health sector software specialist iSOFT is in merger talks with rival firm Torex.
The enlarged company, which would be called iSOFT, would be the country’s leading provider of healthcare information systems and would have a market value of around £700m.
Torex was founded by Chris Moore, the businessman who owns ailing Oldham Athletic. He will be the chief executive of the new company, while iSOFT founder Patrick Cryne will be executive chairman.
In an all-share takeover deal iSOFT will offer 1.7692 new shares for each Torex share, giving Torex shareholders 44% of the merged company.
Shares in Torex soared 13% to 582.5p on news of the deal, while the stock of Whitworth Street based iSOFT slumped 9% to 307.5p.
Tremendous opportunity
Patrick Cryne, Chief Executive of iSOFT, commented: “The proposed merger of iSOFT with Torex represents a tremendous opportunity for both businesses to capitalise on the unfolding developments within the international healthcare IT markets.
“The merger combines iSOFT’s innovative IT solutions with the domain expertise and service capacity of Torex. From an iSOFT perspective, the merger accelerates our strategy to become a world leader in the supply of modern innovative healthcare applications.
“Our combination with Torex consolidates our position in the UK and Ireland and adds healthcare markets of Continental Europe to iSOFT’s existing territories of Scandinavia, Australia, New Zealand and Asia-Pacific”.
Chris Moore, Chairman of Torex commented: “Our organisations have unique complementary strengths that make the merger a forceful proposition. Torex has established a business with significant domain expertise and service capability whilst iSOFT has positioned itself at the forefront of the provision of leading software in healthcare IT.
“Our proposed combination with iSOFT will establish a world-class healthcare solutions company at a time of great change and investment by the world’s leading economies.
“Torex looks forward to realising the benefits of our proposed merger for our shareholders, customers and employees, with great enthusiasm and optimism.”
The deal was initiated by local corporate finance specialists, Dow Schofield Watts LLP. James Dow, a former partner of KPMG Manchester, advised iSOFT throughout the discussions. Dow Schofield Watts was established in October 2002 and the £700m deal must be one of the largest deals arranged in the North this year.
