NU Online News Service, March 14, 2005, 3:02 p.m. EST

MphasiS BFL Ltd., Andheri, India, has agreed to pay at least $16.5 million in cash for Eldorado Computing Inc., Phoenix.[@@]

MphasiS is a company that sells technology and business support services.

Eldorado develops claims-processing and benefits-management systems for health insurers, health maintenance organizations and other health carriers. The privately held company began selling software in 1984 and says it now generates about $10 million in annual revenue.

In addition to agreeing to pay $16.5 million in cash up front, MphasiS has agreed to pay bonuses to Eldorado’s top managers over the next 3 years if Eldorado does well, according to MphasiS.

MphasiS and Eldorado hope to complete the deal by March 31.