iSoft, the UK-listed medical software company, has confirmed that it has entered into talks with a number of potential buyers with a view to putting the business up for sale. 

The news follows months of speculation over the future of the troubled firm, which has released a number of profit warnings over the last year as it struggled to complete a £6.2bn upgrade of NHS IT systems. 

The identities of the potential buyers have not been revealed, but iSoft has stated that they include financial investors and other firms with healthcare interests. 

iSoft's options include an outright sale, a strategic alliance or parting with significant stake in the company. Gleacher Shacklock and Morgan Stanley will advise on any sale.

Based in Manchester, iSoft supplies software application systems to over 8,000 healthcare providers in more than 27 countries. In 2005, the company made a £344m loss, and despite securing new financing, its share price has fallen by up to 90 per cent this year.