(Reuters) - Xerox Corp (XRX.N) said it agreed to sell its information technology outsourcing (ITO) arm to French IT services firm Atos SE (ATOS.PA) for $1.05 billion.

The IT outsourcing business generated $376 million in the quarter ended Sept. 30.

"Xerox's ITO business includes about 9,800 employees in 45 countries," the company said in a statement.

"The Xerox ITO leadership team will join Atos."

Under the terms of the transaction, Atos will provide IT services to Xerox.

Xerox also said it now expects adjusted full-year 2014 earnings per share of $1.04 to $1.06, below analysts' average estimates of $1.12, according to Thomson Reuters I/B/E/S.

(This story corrects second paragraph to remove ranking of IT outsourcing business within Xerox, adds dropped word "ended"; in last paragraph adds dropped word "adjusted")

(Reporting by Subrat Patnaik in Bengaluru)