AIG Reaches Deal to Sell Indian IT Unit to MphasiS

American International Group reached a deal to sell another unit on Wednesday.

The battered insurance giant will sell its AIG Systems Solutions Pvt. Ltd., an India-based company that provides information technology services to AIG companies around the world, to MphasiS, of Chennai, India.

MphasiS, a unit of Hewlett Packard's Electronic Data Systems, said about 39 percent of its revenue comes from financial services and insurance companies.

Terms of the deal were not disclosed. AIG Systems Solutions is based in Chennai and Kolkata and has about 800 employees.

The agreement was announced on the same day AIG said it will sell its Hong Kong finance business to a Chinese bank for $70 million in cash and $557 million in debt, and a day after the company said its financial products unit completed the sale of its energy and infrastructure investment assets.

AIG has been selling off parts of the company in an effort to raise money to pay back the U.S. government. The insurer received a loan bailout package worth up to $182.5 billion. The government now owns roughly 80 percent of the huge insurer.

AIG shares closed up 41 cents at $25.33.

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.