STRUGGLING health software group iSOFT is in "advanced talks" with several parties interested in acquiring or taking a significant stake in the company.

The firm - which was heavily criticised by MPs this month for its role in the much-delayed £8bn upgrade to NHS computer systems - said that the talks were with both trade and private equity groups.

Its shares were up seven per cent at 41.25p.

Australian health information company IBA Health said in February it was in talks with iSOFT about a takeover bid, although the company, which until last year was based in Manchester, would not comment on the identity of its current suitors.

Stellar

iSOFT was spun out of KPMG Consulting in Manchester in 1998. It enjoyed stellar growth until last year. Its share price rocketed to over 400p, and market value neared £1bn.

It said the takeover talks were among its options for refinancing bank borrowing and facilities, which need to be addressed ahead of their renewal date in November.

The company added that results for the full year to April 30 are likely to be in line with expectations, with revenues to come in towards the upper end of a £171m to £181m range indicated in December.

On top of its recent criticism by MPs, iSOFT is also under investigation by the UK financial watchdog the Financial Services Authority for booking NHS revenues it had not been paid.

A number of buyers have been linked to iSoft, including US private equity business General Atlantic Healthcare and US drugs distribution firm McKesson.

The sale process also requires the support of Computer Sciences Corporation, the firm responsible for subcontracting NHS work to iSOFT.

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