Plans by UK software group Misys to spin off its healthcare division have been thrown into jeopardy by the collapse of Lehman Brothers.
The deal to sell the ailing division to US-based Allscripts Healthcare Solutions, hinged on a $305 million credit package agreed with Lehman in March.
In a statement issued late Tuesday, Misys said: "Given events surrounding the future of Lehman Brothers, we are unable to get certainty as to whether Lehman Brothers will be able to fulfill its role under this facility. Consequently Misys has already commenced the process of identifying other funding alternatives and is in discussions with several debt providers with a view to ensuring sufficient funds are available at completion of the proposed merger with Allscripts' subsidiary."
Misys says the debt financing of its banking activities is not sourced from Lehman Brothers and as such "is not affected by Lehman Brothers' current trading position".
Lehman Brothers is currently a customer for the Misys Loan IQ and Misys Summit products. The firm says amounts outstanding for receivables and contracted future revenue from these contracts "are immaterial" to the group's revenue.
Misys has decided to adjourn the extraordinary general meeting convened to approve the merger with Allscripts on Monday 22 September 2008. "The EGM will be reconvened on 6 October 2008 to allow Misys and its shareholders a sufficient period of time to address the Lehman Brothers' situation," says the company.