MphasiS buys AIGs Indian IT unit

MphasiS,part of the HP group,has reached an agreement to acquire AIG Systems Solutions Pvt Ltd....

MphasiS,part of the HP group,has reached an agreement to acquire AIG Systems Solutions Pvt Ltd (AIGSS),provider of information technology services and solutions to AIG companies worldwide,for an undisclosed amount.

Based in Chennai and Kolkata,AIGSS provides IT services to AIG and its member companies. AIGSS’ service offerings include application development and maintenance,application implementation,testing,product development and support. MphasiS has a strong presence in the insurance vertical,this acquisition further strengthens our ability to add greater value to insurance clients, said Ganesh Ayyar,chief executive officer of MphasiS. We look forward to welcoming 800 new employees as part of the MphasiS family.

AIG Systems Solutions has facilities in Chennai and Kolkata. Shares of MphasiS,owned by Electronic Data Systems Corp,a unit of Hewlett-Packard,moved up marginally by 0.03 per cent to Rs 500.45 on the BSE on Wednesday.

Over 39 per cent of the MphasiS revenues are from the financial services and insurance (FSI) industry vertical. This transaction further strengthens the FSI industry offerings of MphasiS with a significantly enhanced Insurance solutions portfolio. The acquisition of AIGSS will help MphasiS augment its capabilities for the insurance industry and offer domain solutions, it said.

In December,Wipro Ltd,Indias third-ranked IT services firm,announced the acquisition of Citi Technology Services Ltd for $127 million,as the embattled Citigroup looked to shed assets outside its core business.

American International Group,seeking to raise cash to repay around $180 billion in bail-out loans,has also agreed to sell its Hong Kong consumer finance. China Construction Bank (CCB) Asia ,the countrys second-biggest lender will buy 100 per cent of AIG Finance (Hong Kong) Ltd for $70 million in cash in a deal that includes repayment of intra-group indebtedness and deposits of about $557 million,the two companies said on Wednesday.

AIG,once the worlds largest insurer,is winding down some units and selling others to cut risky investments to stabilise the company and raise cash after being rescued by the US government during the height of the credit crisis last year.