IT services provider MphasiS Ltd said it has agreed to buy 100 per cent stake in AIG Systems Solutions Pvt Ltd for an undisclosed sum in an all-cash deal to strengthen its service offerings for the insurance sector.
AIG Systems, a member company of the insurance major American International Group Inc, is an India-based provider of application development and maintenance services to AIG companies worldwide. It has delivery centres in Kolkata and Chennai and employs about 800 people.
“The acquisition would not only add new capabilities, but also help MphasiS expand its footprint within AIG,” said Mr Gopinathan Padmanabhan, President, Applications Services Business Unit, MphasiS.
AIG Systems has capabilities in areas such as personal auto, retirement services, re-insurance and commercial services, while MphasiS is strong in life insurance, property and casualty, travel insurance and others, said Mr Padmanabhan. With the acquisition, MphasiS is expected to become a dominant service provider for AIG. This would be beneficial in terms of revenue generation once AIG reaches a more stable position and makes fresh investment in IT solutions, he said.
It would also help MphasiS to engage with the business divisions within AIG that are not its clients now. “MphasiS has a strong presence in the insurance vertical, and this acquisition further strengthens our ability to add greater value to insurance clients,” said Mr Ganesh Ayyar, Chief Executive Officer of MphasiS. “We look forward to welcoming 800 new employees as part of the MphasiS family.”
Source: The Hindu Businessline