IT and BPO Services Company MphasiS has acquired captive unit of the recession-hit insurance firm AIG, beating rival Patni Computers, for an undisclosed amount. Hewlett Packard (HP)-controlled MphasiS had said a few days back that it was in final stages of talks to acquire AIG Systems Solutions (AIGSS), having centers in Chennai and Kolkata.

MphasiS CEO Ganesh Ayyar said: "We have had an excellent relationship with AIG as a customer since 2006 and we believe the captive arm of AIGSS has tremendous capabilities in the insurance vertical and adds to our existing capabilities."

According to recent acquisition trends in IT segment, services providers, having good business relations with the parent companies, are taking over captive units. Recent acquisitions by of Citigroup's IT captive by TCS and Wipro is a glaring example of this trend.

Mr Ayyar, on the issue of valuation, said: "I think you have to look at it from the seller's viewpoint, in this case AIG. I am sure they found our offer attractive and we found the offer attractive from an investment point of view."