Bangalore: IT major IBM on Thursday said it has agreed to acquire Toronto-based risk analytics firm Algorithmics for $387 million (about Rs 1,750 crore).
The acquisition is subject to applicable regulatory clearances and other customary closing conditions. With the closing of this acquisition, approximately 900 Algorithmics employees will join IBM’s Software Group, IBM said in a statement.
“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,” IBM general manager (Business Analytics) Rob Ashe said.
Risk analytics, software, content and advisory services of Algorithmics, a member of Fitch Group, are used by banking, investment and insurance businesses to help assess risk, address regulatory requirements and make more insightful business decisions.
Algorithmics’ risk analytics, software and services combined with IBM’s acquisition of OpenPages and recent investments in predictive analytics will provide clients with the broadest range of business analytics solutions, IBM said.
More than 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, IBM said.
The clients include The Allianz Group, BlueCrest, HSBC, Nedbank, Nomura, Societe Generale, and Scotia Capital.
“Combining Algorithmics’ thought leadership, technology, content and services with IBM’s globally recognized analytics business will help a broader group of clients improve their business performance based on a deeper understanding of risk,” Algorithmics president and COO Michael Zerbs said.