IBM Completes Acquisition of Algorithmics
ARMONK, N.Y., Oct. 21, 2011 /PRNewswire/ -- IBM (NYSE: IBM) today announced the closing of its acquisition of Algorithmics. The acquisition expands IBM's business analytics capabilities in the area of financial risk. Algorithmics provides software and services for improved business insights at banks and investment and insurance organizations to assess risk and address regulatory challenges. The purchase price is $380.2 million.
Algorithmics' capabilities, combined with IBM's recent acquisition of OpenPages, gives clients a full array of financial and operational risk technology offerings and services to help with these challenges. The ability to gain granular insight into financial risks in advance provides businesses with critical information vital to their operations.
"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 organizations to quantify, manage and optimize 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 optimization software and services capabilities.
Algorithmics has operations in Toronto, London and more than 20 locations worldwide. Approximately 350 clients, including 25 of the top 30 banks and more than two-thirds of the CRO Forum of leading insurers, use Algorithmics' analytics software and advisory services. Clients include The Allianz Group, BlueCrest, HSBC, Nedbank, Nomura, Societe Generale, and Scotia Capital. 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, approximately 900 Algorithmics employees will join IBM's Software Group.
For more information, visit www.ibm.com/analytics/algorithmics.html
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