iSOFT sells the Torex Retail Business for £66.9 million
By Our Corporate Bureau | 27 Feb 2004
Mumbai: As part of continued focus on Healthcare practice, iSOFT Plc has announced the sale of Torex Retail Business. It is important to note that iSOFT had acquired Torex''s Healthcare and Retail business in 2003. iSOFT, a leading international supplier of healthcare information systems, which support patient, clinical and business management processes in hospitals and healthcare provider organisations, has a strong presence in India through its R&D center in Chennai. iSOFT is using Chennai facility to develop next generation software products for the healthcare segment globally.
iSOFT has sold the Torex Retail Business for £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 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 organizations 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."
