iSoft's shares, which were suspended from trading at the company's behest on Monday, last traded at 5.2 cents. The company's fall from grace has been swift - a year ago shares were trading at ten times that amount, and far higher again the year before.

For the half year to the end of December iSoft reported sales of $161 million, down 27 per cent over the comparable period a year earlier. It also recorded an after tax loss of $84 million compared to an earlier modest profit.

In December last year the company offloaded iSoft Business Solutions to Capita Group, which operated mainly in the UK and Ireland, with some activity in Hong Kong for $31.5 million.

CSC and iSoft have been partners in the UK for some time, where iSoft's Lorenzo system has been used as the underpinnings for a £13 billion National Health system revamp which by some estimates is now running five years behind schedule and remains in the gunsights of the cost cutting British Government.

While iSoft had been successful, with systems installed in 8,000 plus facilities, it had also been quite lavish in some of its spending especially in terms of the fit out of some of its offices.

The Sydney headquarters were particularly lavish with a technology experience-pod with touch screen table in its main office. It had also installed high tech videoconferencing equipment in the Watsons Bay and UK homes of its (then) chairman connecting to another 175 executives.

The iSoft purchase will strengthen CSC's healthcare credentials and also unshackle the company from the drag of the strong $A which has long been blamed for iSoft's woes in terms of its ability to compete internationally. In a statement released overnight CSC said it would add iSoft's 3,300 global employees to its headcount.

It added that more than 13,000 healthcare providers and governments in 40 countries use iSoft's e-health software solutions to manage patient information and drive improvements in their core processes. iSoft systems are installed in more than 8,000 hospitals and clinics.

Michael Laphen, CSC chairman, president and chief executive officer said in a statement that;  'When completed, this acquisition will be a critical step in the expansion of our global healthcare business. CSC will be at the forefront of emerging healthcare technologies, giving our clients access to an expanded range of healthcare capabilities and continuing our journey of bringing the vision of a single patient record to life.'