iSoft sells off Business Solutions
- 14 December, 2010 16:32
Embattled e-health provider iSoft (ASX:ISF) has begun selling off the farm to pay down its debts.
The company has sold its financial management solutions unit, iSoft Business Solutions (iBS) to Capita Group PLC.
According to an iSoft statement, the iBS unit was classified as a non-core business under its ongoing strategic review.
The company has also sold off is GP administration software business unit, Monet, to an undisclosed buyer.
The two businesses were sold for $28.5 million and will be used to pay fees related to the refinancing and reduction of a “senior bridge revolver” debt facility.
“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,” chief executive, Andrea Fiumicelli, said in an ASX statement.
“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.”
iSoft’s bridge facility is expected to be reduced from $64.5 million to $37.7 million as a result of the sales.
Fiumicelli was appointed CEO earlier this month following a period as acting CEO after Gary Cohen resigned from the position in September.
In September, the company said it would lay off 800 staff, constituting 17 percent of its total workforce, over the next financial year in a bid to halt its sliding financial fortunes.
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