IT firm Mphasis buys AIG's Indian operations

Indian information and technology company MphasiS today said that it has reached an agreement to acquire AIG Systems Solutions, the Indian arm of troubled US insurer American International Group Inc, for an undisclosed amount.

In a filing to the Bombay Stock Exchange, the company said, "This acquisition gives MphasiS the depth and breadth for us to be the preferred partner of choice in their IT transformation." The transaction is subject to legal and statutory requirements.

AIG Systems Solutions Private Ltd, the Indian branch which provides IT services to AIG companies worldwide, has more than 800 staff at its facilities in Chennai and Kolkata. MphasiS, which gets more than 39 per cent of its revenue from its financial services and insurance industry clients, will be able to boost its offerings for the insurance sector with this acquisition, the company statement said.

AIG, once the world's largest insurer, is also winding down some units and selling others to cut risky investments and raise cash to repay $80 billion in taxpayer loans.