Critical.
Authoritative.
Strategic.
Subscribe to CIO Magazine »

IBM to buy risk analysis company Algorithmics for $387M

IBM said Algorithmics' focus on credit and market risks will strengthen its advisory practice

IBM plans to acquire risk analytics company Algorithmics for US$387 million, a deal that IBM said on Thursday will bolster its risk management offerings in light of increasing regulation in the financial markets.

Algorithmics, founded in 1989, is owned by the Paris-based holding company Fimalac and is a member of the Fitch Group. It provides analytics software and advisory services to 25 of the top 30 banks, including HSBC, Societe Generale and Nedbank, as well as insurance and investment companies, according to a news release. It has more than 350 clients.

The company's software is used to analyze credit and capital risks as well as risk in markets. IBM said there is demand for risk analysis following regulations imposed after the global financial crisis.

IBM said once the acquisition clears regulatory approval and closes, 900 employees from Algorithmics will become part of its Software Group. Risk advisors form Algorithmics will work with IBM's Business Analytics and Optimization practice, a team of 8,000 consultants. Algorithmics' operations are located in Toronto.

IBM said it has spent more than $24 billion in acquisitions for that practice, which has a network of analytics centers.

The acquisition is the second one announced by IBM in the last two days. On Wednesday, IBM said it was in the process of buying i2, a maker of security analytics software used by the military and law enforcement. Terms of that deal were not announced.

Send news tips and comments to jeremy_kirk@idg.com

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: etwork, HSBC, i2, i2, IBM, IBM Australia
References show all

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.
Users posting comments agree to the CIO comments policy.
Login or register to link comments to your user profile, or you may also post a comment without being logged in.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: Algorithmics, applications, business intelligence, business issues, IBM, mergers and acquisitions, software
Latest Blog Posts
Whitepapers
  • Seven Steps to Effective Data Governance
    Creating a framework to ensure the confidentiality, quality, and integrity of data – the core meaning of data governance – is essential to meet both internal and external requirements, such as financial reporting, regulatory compliance, and privacy policies. At its best, data governance roots out risk – both business and compliance risk – by increasing oversight. This white paper provides seven steps for taking such an approach, concluding with a real world example, taking an incremental approach using a repeatable framework that is a practical, proven strategy that any size organization can implement to suit their immediate and long-term needs and budget.
    Learn more »
  • Case Study: Keeping information on the move: Clearswift protects Maman, the logistics experts
    Time is money. Every minute a consignment is held up in transit costs money and causes problems. Web and email are mission critical business tools that enable Maman, and their customers, to efficiently collaborate with partners across the globe. Spam, and other web based threats can result in delays that ultimately lead to missed deadlines - keeping the lines of communication open is therefore a key priority for Maman. Read on.
    Learn more »
  • Government Communications 2.0
    The problem with data is that it’s only useful if you share and use it. Equally, the more data we share electronically, the greater the risk of it falling into the wrong hands. Public sector organisations can’t function without legitimately gathering and using personal information about the citizens they are mandated to serve. Technology has made a significant contribution to that process, but has also brought new risks. Read on.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.
Recent comments