Healthcare Insurance and Payments BPO Market with the acquisition
of Eldorado Computing Inc.
Combined entity will offer a complete portfolio
of services to automate and outsource the processes related to healthcare
Mumbai, 14 March 2005
The MphasiS BFL Group, a leading provider of IT and BPO solutions
announced today that it has entered into a definitive agreement
to acquire Eldorado Computing Inc., a US based healthcare benefits
management solutions firm, for US$ 16.5 million in an all cash deal.
The deal also allows for a performance based incentive for Eldorado’s
top management over the next three years. The transaction is expected
to be immediately EPS accretive.
Eldorado Computing, Inc., a profitable entity with revenues of
over $10 million, specializes in claims processing and benefit management
solutions for the health insurance industry. Eldorado’s customers
include third party administrators, HMOs, insurance companies, self-funded
employers, preferred provider organizations, associations, managed
care organizations and unions. With 128 clients representing 2.5
million members, the Company is a leader in technology administration
solutions for healthcare payers. Its core business products and
services include software solutions for health benefit management
offered on a licensed basis or on an Application Service Provider
platform. This solution streamlines the administrative costs and
the technology required to command the processes of claims, billing,
administration, case management, workflow, online enrollment and
Beginning with its first system release in 1984, Eldorado Computing
Inc. has enjoyed steady growth and achieved widespread acceptance
of its systems making it one of the industry's dominant vendors.
Recently Eldorado has started to package their platform with Business
Process Outsourcing services in the claims administration space.
Commenting on the acquisition, Mr. Jerry Rao,
Chairman & CEO, MphasiS BFL said, "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. The deal is a perfect strategic fit for MphasiS
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 world class
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”.
Mr. Zane Bell, CEO, Eldorado Computing Inc.,
said, “We are strongly committed to growing Eldorado’s
business and look forward to working closely with MphasiS’
world class BPO and IT Services teams. By utilizing 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 both a leading IT platform as
well as BPO services company” .