iSOFT Group Limited (ASX:ISF) Announces Sale Of Non-Core Assets To Enable Debt Reduction Of A$28.5 Million
iSOFT has sold iSOFT Business Solutions (iBS), its financial management solutions business to Capita Group plc (LON:CPI) (PINK:CTAGY). The business was classified non-core as part of iSOFT's ongoing strategic review. Together with the proceeds from another smaller asset sale, Monet, a GP administration software, iSOFT has A$28.5 million available to pay fees related to the refinancing and reduce the senior bridge revolver facility in our group debt.
iSOFT Business Solutions offers financial management, purchasing and e-business solutions to customers across both public and private sectors primarily in the UK and Ireland. It generated revenue of GBP17.7 million and EBITDA of GBP5.8 million in the year to 30 June 2010. Chief Executive Officer Andrea Fiumicelli said: "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. 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." The business is being sold for a debt free / cash free equivalent value of GBP23.2m.
iSOFT's UK and Ireland healthcare business remains unaffected by the sale.
Debt facilities update
The size of iSOFT's bridge facility will be reduced from GBP40m (A$64.5m) to GBP23.2m (A$37.4m) in accordance with the facility documentation.
iSOFT Group Limited
Capita Group plc