CSC buys one health care provider, sells another

Computer Sciences Corp. has been busy in the health care solutions business the past few days.

At the same time that CSC was acquiring iSoft Group Limited of Australia in a cash-for-stock deal estimated at $300 million, it sold its AdvanceMed business for $62 million to NCI, a Reston, Va., provider of IT, data mining and data analytical tools to help federal healthcare agencies detect and prevent fraud.

Shares in iSoft soared 188 percent Monday after the company confirmed and endorsed the CSC takeover.

More than 13,000 health care providers and governments in 40 countries use iSoft’s e-health software solutions to manage patient information, making iSoft Group is one of the world’s largest providers of advanced health care IT solutions, according to a CSC announcement.

Adding iSoft’s 3,300 global employees including those from major research and development centers in India, Spain, the United Kingdon, Australia, New Zealand and Central Europe will expand CSC’s capability to support existing customers, develop more innovative solutions, and add a robust set of clients in new and emerging markets.

The acquisition will complement and strengthen CSC’s software products and health care integration and services portfolio, and also accelerate the company’s strategic growth plan in the life sciences market, the statement said.

The transaction is expected to close during CSC’s second quarter of fiscal 20112, subject to various conditions, including iSoft shareholder approval and certain Australian and EU regulatory approvals.

NCI said on Monday it had completed its $62 million acquisition of from owner CSC.

NCI’s plans to acquire Baltimore-based AdvanceMed from CSC were first announced in February. AdvanceMed uses IT, data mining and data analytical tools to help federal health care agencies – most notably the Centers for Medicare and Medicaid Services – detect and prevent fraud.

The company supports health care programs in 38 states with a staff of more than 450 employees.

"We believe that the program integrity market offers substantial long-term growth opportunities and that AdvanceMed is ideally situated to address this market," said Charles Narang, the chairman and CEO of NCI.

The acquisition includes a recently completed data center.

CSC, of Falls Church, Va., ranks No. 10 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors.