MphasiS BFL gains on US Eldorado buy

DALAL STREET SPIKES

Domestic BPO firm MphasiS BFL ended higher on news of acquiring US-based Eldorado Computing Inc. The stock in the morning trades was up 7.04 per cent to its day's high of Rs 260.

But the stock failed to hold on to its gains on overall profit booking in the market. MphasiS BFL stock ended at Rs 244.50, up 0.97 per cent from its previous close with more than 1.58 lakh share traded on BSE.

MphasiS BFL announced that it has entered into a definitive agreement to acquire Eldorado Computing Inc, a US-based healthcare benefits management solutions firm, for $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. The acquisition will position MphasiS as a first mover in integrating a global sourcing back-end to a platform-based software offering".

The transaction is expected to be completed in the quarter ending March 31, 2005, the company in a release said. Eldorado has 128 clients and its divisions had revenues of about $10 million last year.