Information  X 
Enter a valid email address

iSoft Group PLC (IOT)

  Print      Mail a friend

Tuesday 10 February, 2004

iSoft Group PLC

Disposal

iSoft Group PLC
10 February 2004


10 February 2004


                           iSOFT Group plc ("iSOFT")

         Disposal of the Torex Retail Business for up to £66.9 million


iSOFT, a leading international supplier of healthcare information systems which
support patient, clinical and business management processes in hospitals and
healthcare provider organisations, announces the sale on 9 February 2004 of the
Torex Retail Business for up to £66.9 million to Lynxangel (Holdings) PLC 
("Lynxangel"), a company established for the purpose of this acquisition. The
Torex Retail Business comprises Torex Retail Limited, Torex Retail (Holdings)
Limited and their respective subsidiary undertakings, together with 69.8 per
cent of the issued share capital of Logware Informationssysteme GmbH.

The sum of £66.9 million comprises (i) £45.0 million paid in cash on completion
which is inclusive of the repayment of intra-group debt, (ii) £14.2 million of
loan notes, and (iii) £5.3 million of ongoing liabilities which relate to the
Torex Retail Business but which would otherwise have been payable by the iSOFT
Group.  The loan notes are to be redeemed on 9 February 2005 or, if earlier, the
date of any IPO or sale of Lynxangel or a material part of its business.  If the
loan notes are redeemed on 9 February 2005, they will be redeemed at their face
value of £14.2 million.  If, however, they are redeemed on an IPO or sale of
Lynxangel or a sale of a material part of its business, they will be redeemed at
a 17 per cent premium to their face value.

The Torex Retail Business, which is involved in supplying IT solutions to the UK
and Irish retail sectors, made pre tax profits of £7.1 million on turnover of
£59.7 million in the year ended 31 December 2003.  At that date, its net assets
were £14.1 million.

As a result of the disposal, iSOFT's continuing activities will be wholly
focused on the provision of technologically advanced software applications to
healthcare provider organisations in the UK and internationally.  The proceeds
from the disposal will be used in part to reduce group indebtedness and as to
the balance for general working capital purposes.

Commenting on the disposal, Tim Whiston, Chief Executive of iSOFT, said:

"The disposal will ensure that iSOFT's focus is maintained exclusively on the
healthcare information systems market.  We are very well placed in both the UK
and overseas and the swift conclusion of this disposal and focus on our core
business will enable us to drive all our efforts towards converting the many
opportunities open to us in the healthcare marketplace."



                                      Ends


Enquiries:
iSOFT Group plc: +44 (0) 161 935 8800
Mark Woodbridge, Business Development Director
John Whelan, European Finance Director

Hoare Govett Limited: +44 (0) 20 7678 8000
Chris Fielding
Andrew Chapman

Financial Dynamics: +44 (0) 20 7831 3113
Giles Sanderson
James Melville-Ross




                      This information is provided by RNS
            The company news service from the London Stock Exchange