Misys, the UK?s largest independent software house, saw its shares tumble 118.5p to #14.80 on announcing a $913m (#568m) bid for US-based Medic Systems.

Misys? #1.27bn business is based on selling application software to the banking and insurance industries.

This radical move into the burgeoning US healthcare market ? valued at $12bn and growing at 25% per annum according to Misys ? has raised eyebrows here and in the US.

Chairman Kevin Lomax explained the move: ?Misys is strategically positioned in markets where application software is mission-critical and IT spending is set to grow most strongly. The IT health market in the US demonstrates similar characteristics.?

US healthcare providers are under pressure to streamline operations, and are investing in billing and online transaction systems in which Medic ? the fifth largest healthcare IT company in the US ? specialises.

Medic reported $191.8m in revenues and pre-tax income of $38.89m for 1996.