Imprivata and Isosec abandon merger during CMA investigation

Mergers & Acquisitions | South East

healthcare

Imprivata and Isosec have abandoned their proposed tie-up after the CMA found competition concerns.

Based on assurances received from Imprivata that the deal has been abandoned, the Competition and Markets Authority (CMA) has decided not to refer the merger for an in-depth investigation.

Imprivata and Isosec provide secure authentication management solutions to healthcare providers in England. These technologies can give staff protected access to sensitive patient data sourced from a central NHS IT system.

In its initial ‘Phase 1’ investigation, the CMA found evidence indicating that Imprivata and Isosec are important rivals in this area and that part of the motivation for the takeover was the removal of a competitive threat from the market. Competition between these companies was also expected to grow in the future with the introduction of new products.

The CMA was concerned that, if the merger went ahead as planned, it would have an impact on NHS and other healthcare providers across England and could potentially lead to taxpayers receiving poorer value for money in relation to these services. In addition, the companies’ customers, including the NHS, would have limited other options in terms of suppliers.

The CMA announced on 29 April 2021 it would refer the deal to an in-depth Phase 2 investigation unless the parties offered acceptable undertakings to address these competition concerns. As the transaction has been abandoned, the deal will now not be referred.

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