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OFT invites comment on proposed acquisition by Clinisys Solutions of Torex's LIMS business

8 November 2004

The OFT is inviting comments on the proposed acquisition by Clinisys Solutions Limited (Clinisys), formerly Sysmed Solutions Limited, of Torex's LIMS business from iSOFT plc.

On 29 April 2004 the OFT accepted undertakings in lieu of reference to the Competition Commission (CC) from iSOFT to divest Torex's LIMS business to a purchaser to be approved by the OFT (see press release 78/04). LIMS are computer systems used to manage laboratory processes in hospitals or trusts.

The OFT invites comments on the proposed merger, in particular on the following points:

• whether Clinisys is independent of and unconnected to iSOFT
• whether Clinisys has the financial resources, expertise and incentive to maintain and develop Torex's business as a viable and active business in competition with iSOFT and other competitors
• whether the transaction creates a relevant merger situation and, if so, whether it would raise any competition concerns.

Comments should be made in writing by 5pm on Friday 19 November 2004 to:Renella Reumerman, Mergers Branch, Office of Fair Trading, Fleetbank House, 2-6 Salisbury Square London EC4Y 8JX.
Telephone: 020 7211 8000, email renella.reumerman@oft.gsi.gov.uk

NOTES

1. Under the Enterprise Act 2002 (EA02) 'a relevant merger situation' is created where a completed or anticipated 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.

2. The EA02 gives the OFT a duty to refer to the CC a completed or anticipated relevant merger situation where the OFT believes that the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition (SLC) within any market or markets in the UK.

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

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