In a statement, iSoft said it now intended to recommend the new IBA offer. The company said: "IBA's cash offer represents superior value for iSoft shareholders compared with that of CompuGroup. "Isoft has therefore withdrawn its recommendation of the CompuGroup offer and intends to recommend the IBA cash offer." The panel on on takeovers and mergers will not be proceeding with an auction of iSoft, the company added. IBA's new offer will be financed through a combination of the company's existing cash resources, the proceeds of a completed rights issue and new financing to be provided by Allco Equity Partners (AEP). The company said the combination with iSoft would create one of the largest providers of information systems in the healthcare IT market with a combined installed base of around 13,000 systems.