ISF 0.00% 17.0¢ isoft group limited

random isf fact of the day

  1. 1,497 Posts.
    I just decided to look up the "pre-NPfIT contract" market-cap of iSoft. Tricky to be exact but NPfIT was entered into in 2004. In 2003, iSoft merged with Torex and the report on that indicated that their combined market cap was equivalent to over GBP 700m. That is 68% higher than the current combined IBA/iSoft market cap of $A758m, even though well into the tech-wreck by then.

    Revenues at that time were projected at $US325m for 2003/04 (apologies for mixed currencies, but having difficulty finding the required info outside various news reports). Using the USD/AUD exchange rate of the day, that would have been about $A460m c.f. current $A540m. IBA would have contributed about another $A75m of revenue on merger.

    Has NPfIT been good for iSoft? The answer at this point would appear to be "hardly!".

    (Of course, no doubt that a case could be made for iSoft having been overvalued, even in those post tech-wreck days - and perhaps IBA the same. Still, it's interesting to see how much value can be demolished in the markets, even while a company appears to be in the right place, taking the right steps.)

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.