Computer Sciences Corp. has ended its dispute with British software firm iSoft Inc. and has given its approval for the company to be acquired by Australian health care technology company IBA Health.

The dispute came to a head last week when the British government warned Computer Sciences that it would take over an $8 billion contract to overhaul the country’s health care records system unless the company could resolve its rift with ISoft Group Plc., which CSC had partnered with on the $8 billion project.

The El Segundo information technology company had been mulling a bid for the Manchester-based software firm, but iSoft agreed to be bought by IBA for about $186 million.

Computer Sciences, whose partnership on the U.K. project gave it a say in iSoft’s future, had initially rejected the acquisition prompting iSoft to warn it would take legal action.

Shares in Computer Sciences closed up 8 cents to $55.23 in trading Monday on the New York Stock Exchange and gained another 21 cents in after-market trading.