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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsbusiness issuesIBMbusiness intelligencesoftwareapplicationsAlgorithmics

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jeremy Kirk

IDG News Service
Show Comments

Father’s Day Gift Guide

Brand Post

Bitdefender 2019

Bitdefender solutions stop attacks before they even begin! Get cybersecurity that 500 MILLION users already have and trust.

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?