CSC bid for iSoft gets shareholder tick

iSoft shareholders have voted in favour of CSC's acquisition of the troubled e-Health company in two separate votes today.

The company had to split the vote on the acquisition by share scheme arrangement after a Federal Court ruling, which attempted to settle a spat that had arisen in court over the value that CSC was set to pay for iSoft's convertible notes.

Previously, a company controlled by former iSoft executive chairman and founder Gary Cohen had been reported as saying that he'd seen better offers for the firm than those put forward by CSC.

Today, however, iSoft's independent directors unanimously recommended that shareholders vote in favour of the acquisition of shares, given that no superior proposal had emerged.

The directors also commissioned an independent expert — Lonergan Edwards and Associates — to look into the deal. Lonergan Edwards and Associates said that the offer was fair and reasonable.

Both groups of shareholders approved the deal in their separate votes.

In order for the acquisition to go ahead, the Federal Court now needs to approve the share scheme, which is scheduled to be considered on 18 July. If that goes through, iSoft's last day of trading will be 19 July. Shareholders will receive $0.17 per share.

The buyout came after issues in the company's UK operations had led to losses and share price falls, which the company had been fighting to stem via management changes and a company restructure.