Mphasis to acquire Eldorado Computing

MUMBAI: The MphasiS BFL Group, provider of IT and BPO solutions, has entered into a definitive agreement to acquire US based Eldorado Computing, a healthcare benefits management solutions firm, for $16.5 million in an all cash deal. The transaction is expected to be completed by March 31, 2005.






Commenting on the acquisition, MphasiS BFL chairman and CEO Jerry Rao said, "This acquisition is part of MphasiS' overall business strategy to strengthen its footprint in the US and to enter the healthcare insurance and payment market. The deal is a perfect strategic fit for the company as it provides a well-established software platform and marquis healthcare customer base. This is the foundation on which the combined entity will offer a complete portfolio of services to automate and outsource the processes related to healthcare benefits, management."





"This is a high growth area and with Eldorado's platform we will be able to become a business service provider in addition to being an application service provider. The acquisition will position MphasiS as a first mover in integrating a global sourcing back-end to a platform-based software offering", he added.





Eldorado Computing is a $10 million entity that specializes in claims processing and benefit management solutions for the health insurance industry. Its core business products and services include software solutions for health benefit management offered on a licensed basis or on an application service provider (ASP) platform.