Date:15/03/2005 URL: http://www.thehindubusinessline.com/2005/03/15/stories/2005031502060500.htm

Back MphasiS to buy US firm — Access to healthcare benefits management

Our Bureau

Mr Jerry Rao, Chairman & CEO, MphasiS (left), with Mr Ravi Ramu, CFO, at a press conference in Mumbai on Monday. — Paul Noronha

Mumbai , March 14

INFORMATION technology and business process outsourcing (BPO) solutions provider MphasiS BFL is acquiring Eldorado Computing Inc, a US-based healthcare benefit management firm, for $16.5 million in an all-cash deal.

"This acquisition is part of MphasiS' overall business strategy to strengthen our footprint in the US and to enter the healthcare insurance and payment market," Mr Jerry Rao, Chairman and CEO, Mphasis BFL, told reporters here on Monday.

Eldorado Computing, which specialises in claims processing and benefit management solutions for the health insurance industry, has over $10 million in revenues. The acquisition will also give MphasiS access to the 128 clients representing 2.5 million members that Eldorado serves. "The acquisition will position MphasiS as a first mover in integrating a global sourcing back-end with a platform-based software offering," Mr Rao added.

"By utilising MphasiS' global delivery capabilities, we will be able to offer our services to a broader range of customers in the US and will be in a better position to service their needs as a leading IT platform and as well as a BPO services company," said Mr Zane Bell, CEO, Eldorado Computing Inc. The deal allows a performance-based incentive for Eldorado's top management over the next three years.

Explaining MphasiS' three-pronged strategy for the future, Mr Rao said that the company is committed to pursuing two verticals very strongly — financ and technology, while pushing for a platform-based BPO and focusing on its consulting arm.

With health care in the US growing at a very high rate, a large labour force is required for paper work, healthcare payments and claim processing, said Mr Rao. He said the deal would be beneficial, since MphasiS has experience in payments and claims handling. The transaction is expected to be completed by March 31.