Mergers & Acquisitions

Mergers & Acquisitions

September 02, 2011

IBM Acquires Financial Risk Analyst Firm Algorithmics

American technology giant IBM (News - Alert) Corp is set to buy Toronto-based software maker Algorithmics for $387 million.

The acquisition helps IBM expand its offerings to financial services industry and cash in on the growing volatility in the corporate sector. Algorithmics, a subsidiary of Paris-based Fimalac, is said to have more than 350 clients, including 25 of the world's top 30 banks.

"Combining Algorithmics' expertise with IBM's deep analytics portfolio will allow clients to take a more holistic approach to managing risk and responding to economic change across their enterprises," said Rob Ashe, general manager of business analytics with IBM, said in a statement.

IBM says it believes that demand for financial risk management service will soar in the coming days as the corporate world has become increasingly volatile.

Algorithmics’ software is used mainly by banking, investment and insurance firms for assessing risk and for addressing regulatory requirements.

A combination of IBM and Algorithmics analytics can help companies measure and assess operational risk associated with lending processes, market and credit risk exposures.

 “It is increasingly important to deliver integrated solutions that provide a deep understanding of risk and enable effective decision support at the same time as meeting rapidly evolving regulatory requirements. The need to have the right information at the right time is fundamental to developing and managing business strategies,” said Dr. Michael Zerbs, president and COO, Algorithmics.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO (News - Alert) offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.

Narayan Bhat is a contributing editor for TMCnet. To read more of Narayan’s articles, please visit his columnist page.

Edited by Rich Steeves

blog comments powered by Disqus

FREE eNewsletter

Financial Technology Industry News