German multinational financial services company Allianz said that it is close to a deal to farm out a major portion of its information technology services. A spokesman for the insurance firm said that the deal was valued at around EUR 500 million or USD 667 million. "We want to enter a strategic partnership with a global supplier. We are currently in the final phase of selection," the spokesman added. The spokesman also said that Allianz would still include the size of the agreement in the negotiations.

Industry sources told Sueddeutsche Zeitung, a German newspaper, that the top contenders were IBM and Computer Sciences Corp (CSC). The daily newspaper, however, revealed that CSC had an edge over its competitor during the negotiations. The outsourcing contract between IBM and its potential supplier was said to be good for ten years, citing sources.

Headquartered in Munich, the core business of Allianz is insurance. The firm also ranks among the top five active investment managers in the world with its Allianz Global Investors division, of which has EUR 1,443 billion assets under management.