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Mphasis buys Eldorado for $16.5 mn

Source: PTI
Last updated on: March 14, 2005 19:22 IST
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IT company Mphasis BFL Ltd has acquired US-based Eldorado Computing Inc, a healthcare insurance business process outsourcing outfit, for $16.5 million in an all cash deal.

This acquisition was part of overall business plans to strengthen its footprint in the US and enter healthcare insurance and payment processing business, Mphasis chairman and CEO Jerry Rao said on Monday.

Eldorado Computing has clocked revenues of $10 million and would contribute to the bottomline immediately, he said. The Arizona-based BPO specialises in claims, processing and benefits in healthcare sector, he added.

Eldorado's customers include third party administrators, insurance companies, self-funded employers and associations among others, Rao said.

In February this year, Mphasis acquired US-based Princeton Consulting for $14 million. The acquisition of Eldorado is the second in this quarter and the biggest by the company.

Earlier, the Indian IT and BPO company had also acquired a Chinese company - Navion - SAP division of Mirc Electronics and an IT company, Kshema Technologies.

Mphasis also intends to recruit "several hundred" employees in the next 6-12 months. Rao, however, did not divulge the exact number of the additional people the company intends to recruit during the period.

On the intended overseas listing of Mphasis BFL, Rao said the company had received broad shareholder approval for it, but was waiting for the right time to tap capital markets in the US and UK, he said.

The company is planning to list its scrip in Singapore, London and US, he added.

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