The acquisition of a digital identity firm for healthcare used widely in the NHS has been blocked听by regulators.听
Isosec, headquartered in Manchester, develops cloud-based virtual smartcards听which allow staff secure access to healthcare听systems听and applications.听
NHS Digital funded the use of the solution for NHS organisations which needed them as part of their COVID-19 response. The company听has more than听120 NHS customers, with particular focus in the听Acute, Primary Care and CCG sectors.听听
In听late听December it was announced that听Imprivata, based in Boston in the US听and which听delivers end-to-end authentication and access management solutions for healthcare organisations, was to acquire听Isosec.听
The听firms said the combined听technology would听provide customers with more ways to securely access clinical workstations and applications and further streamline secure remote working.听
However, the deal has been abandoned after the听Competition and Markets Authority听found competition concerns.听
鈥�Imprivata and听Isosec听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,鈥� it stated.听
鈥�In its initial 鈥楶hase 1鈥� investigation, the CMA found evidence indicating that Imprivata and听Isosec听are important rivals in this area and that part of the motivation for鈥痶he takeover was the removal of a鈥痗ompetitive threat鈥痜rom the market.听Competition between these companies was also expected to grow in the future with the introduction of new products.听
鈥�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鈥� customers, including the NHS, would have limited other options in terms of suppliers.听
鈥�The CMA announced on 29 April 2021 it would refer the deal to an in-depth听鈥�Phase 2鈥�听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.鈥�听