A bidding war has broken out for iSoft, the troubled British software maker that is implementing a major project for the Health Service Executive (HSE).
The award of the €56 million contract to iSoft has been the subject of Dáil questions from Fine Gael, which claims it was won in "very unusual" circumstances in April 2005.
ISoft is building a patients' record system for the HSE. Its involvement in a similar project for the UK's National Health Service (NHS) has been beset by problems and led to iSoft issuing a series of profit warnings.
Australian healthcare technology group IBA Health has now tabled a cash bid of 69p a share, which values the company at £166.3 million (€245 million).
Last month German firm CompuGroup bid 66p a share, while IBA had previously made an all-share offer worth about £138 million.
IBA is seeking a recommendation for the latest bid from the iSoft board, which had previously agreed the CompuGroup offer.
CompuGroup planned to sell the parts of iSoft's business working on the NHS patient records database to US company Computer Sciences Corporation, the firm that subcontracts the NHS work to iSoft.
A spokesman for the HSE said it was "continuing to monitor the situation closely" and was in regular contact with iSoft management.
He said the HSE project was going ahead as planned and 20 hospitals were using the system.
Earlier this month iSoft announced a loss from operations of £14.3 million.
- (Additional reporting Reuters)
