ARMONK, N.Y. – IBM is expanding its analytics portfolio into risk management with the US$387 million acquisition of Toronto-based Algorithmics.
Algorithmics’ risk analytics software, content and advisory services are used by banking, trading and investment businesses to help quantify, manage and optimize their financial, insurance and regulatory risk.
Risk management has become a more pressing challenge for the financial industry because of regulations triggered in response to the global financial crisis.
Algorithmics’ software is used by more than 350 clients around the world, including 25 top banks and leading insurers such as The Allianz Group, BlueCrest, HSBC, Nedbank, Nomura, Societe Generale, and Scotia Capital.
Get weekly money news
Nearly half of its 900 employees are based in Canada.
Algorithmics is a member of Fitch Group, which is majority owned by Fimalac, a holding company based in Paris.
The acquisition is IBM’s second purchase related to analytics in as many days. Earlier this week it bought i2, a security intelligence company that tracks data to identify fraud and security threats.
By combining Algorithmics with OpenPages and other recent investments, IBM says it is broadening its advanced analytics capabilities to clients in the public sector, banking and financial services markets.
Upon receiving regulatory and other approvals, Algorithmics will become part of IBM’s business analytics division, which will be headed by Ottawa-based Rob Ashe.
IBM said the acquisition of Algorithmics is part of its long-term strategy to support strong expected growth in business analytics.
Comments