IBM completes US$380.2m Algorithmics acquisition

23 Oct 2011

Technology giant IBM has completed its US$380.2m acquisition of financial risk management software provider Algorithmics.

Algorithmics’ capabilities, combined with IBM’s recent acquisition of OpenPages, gives clients financial and operational risk technology offerings and services.

“Integrated risk management continues to be a challenge across insurance and financial services industries, as data grows in complexity and new regulations continue to be introduced to address financial market trends,” said Rob Ashe, IBM general manager, Business Analytics.

“The combination of Algorithmics and recently acquired OpenPages, along with IBM’s deep analytics expertise, delivers a comprehensive approach to managing risks, enabling clients to make better business decisions faster.” 

IBM and Algorithmics’ advanced analytics technologies and improved business processes will enable companies to measure and assess operational risk associated with lending processes and market and credit risk exposures.

The technologies and business processes help organisations to quantify, manage and optimise their risk exposure across a range of financial risk domains, including market, liquidity, credit, operational and insurance, as well as economic and regulatory capital.  

IBM’s acquisition of Algorithmics is part of a move to broaden advanced analytics capabilities for the financial services industry. The news supports IBM’s long-term growth strategy to expand the company’s business analytics and optimisation software and services capabilities. 

Algorithmics has operations in Toronto, London and more than 20 locations worldwide. Consistent with its acquisition strategy, IBM will continue to support Algorithmics clients while allowing them to take advantage of the broader IBM portfolio. 

With the closing of this acquisition, about 900 Algorithmics employees will join IBM’s Software Group.