IBA Health's chances of iSOFT takeover have improved

German firm CompuGROUP Holding AG, which had made a takeover offer for iSOFT, on Wednesday advised it would not raise its offer.

IBA Health said on Wednesday its offer now stood a better chance of success.

"The decision by CompuGROUP not to increase their offer means that IBA's offer at 69 pence (per iSOFT share) is now the best offer on the table for iSOFT shareholders," IBA Health executive chairman Gary Cohen said.

"We would expect the iSOFT board to now recommend our offer."

"This brings the current competitive situation that has existed to an end. We now look forward to completing our offer over the next few weeks."

IBA has offered 69 pence in cash per iSOFT share or 1.65 IBA shares, or a combination of each.

CompuGROUP had offered 66 pence per iSOFT share.

If iSOFT shareholders accept the IBA offer, IBA will become the largest healthcare IT company to be listed on the Australian stock exchange. It will have a market capitalisation of about $800 million.

CompuGROUP said on Wednesday it would not increase its cash offer of 66 pence per share for iSOFT.

But it reserved the right to increase the offer if another party, other than IBA Health, were to announce a competing offer.

"iSOFT would have been an excellent complement to our international business activities, but CompuGROUP does not intend to enter into a contest that would lead to prices and risks that are unreasonable," CompuGROUP said.