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OFT accepts undertakings from iSOFT

78/04     29 April 2004

The OFT has today accepted undertakings from iSOFT Group Plc to divest the LIMS business of Torex Plc.

On 24 March 2004 the OFT announced that iSOFT's merger with Torex would not be referred to the Competition Commission if iSOFT gave suitable undertakings to remedy competition concerns (see press release 56/04).

The OFT considered that it may be the case that the merger may be expected to result in a substantial lessening of competition in the supply of Laboratory Information Management Systems (LIMS) to NHS hospitals. LIMS are computer systems used to manage laboratory processes in hospitals.

The evidence indicated that, if the parties had not merged, Torex would have had the incentive and ability to maintain competition in the supply of LIMS and that while there are alternative suppliers of LIMS, they might not exert sufficient competitive constraint on the merged iSOFT/Torex in the future.

iSOFT offered to give undertakings to divest Torex's entire LIMS business to a purchaser to be approved by the OFT.
 
Vincent Smith, Director of Competition Enforcement, said:

'These undertakings will address the competition concerns we identified, which related only to the supply of laboratory information managment systems. The existence of a clear cut remedy has avoided the need to refer this case to the Competition Commission.'

NOTES

1. The Enterprise Act 2002 empowers the OFT to refer to the CC a completed or anticipated merger for investigation and report where such merger creates or enhances a 25 per cent share of supply in the UK (or a substantial part thereof) or where the UK turnover associated with the enterprise being acquired is over £70m, and where the OFT believes that it is or may be the case that the merger has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the UK.

2. The OFT may, instead of making a reference to the Competition Commission, accept undertakings from an appropriate party to take such action as it considers appropriate to remedy, mitigate or prevent the substantial lessening of competition or any adverse effect which has or may have resulted from it (or may be expected to result from it).

3. On 6 April the OFT invited interested parties to comment on the proposed undertakings. Following the expiry of the consultation period, the OFT has decided to accept the undertakings in the form in which they were consulted on.

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