A buyout plan involving a Manchester tech company was scrapped after concerns were raised by the Competition and Markets Authority (CMA).

Isosec, based in Trafford Park, Stretford, specializes in authentication and identity management for the NHS and had been targeted by US computer security firm Imprivata.

However, the AMC announced on April 29, 2021 that the proposed deal would be referred for further investigation, unless both sides offer “acceptable commitments” to address concerns.

Following this announcement, Imprivata decided to end the operation, which means that the CMA has decided not to send the merger back for further investigation.

Imprivata and Isosec provide secure authentication management solutions to healthcare providers in England.

These technologies can give staff secure access to sensitive patient data from a central NHS computer system.

In its initial Phase 1 investigation earlier this year, the CMA found evidence that Imprivata and Isosec are significant rivals in this area and that part of the motivation for the takeover was elimination. a competitive threat to the market.

Competition between these companies was also expected to intensify in the future with the introduction of new products.

The AMC feared that if the merger went as planned it would impact the NHS and other healthcare providers across England and could potentially lead to taxpayers getting better value. price in relation to these services.

In addition, business customers, including the NHS, would have limited options in terms of suppliers.