IBM is paying $387 million in cash to buy Toronto-based risk analytics software firm Algorithmics, Reuters reported. Roughly 900 Algorithmics employees will join IBM’s software group once the deal closes. Algorithmics is a member of Fitch Group, majority-owned by Paris-based Fimalac.
(Reuters) – U.S. IT company IBM is buying Toronto-based risk analytics software firm Algorithmics for $387 million in cash to enhance its financial services capabilities.
IBM said the deal, expected to close before the end of October, expands its business analytics capabilities by helping clients manage financial risk.
Algorithmics’ risk analytics software, content and advisory services are used by banking, investment and insurance businesses to help assess risk, address regulatory requirements and make more insightful business decisions.
On Wednesday, IBM also said it was buying British security analytics software firm i2 for an undisclosed sum, as it continues to acquire companies that can help its clients deal with growing mountains of data.
In five years, IBM has spent more than $14 billion on 25 acquisitions focused on analytics to help its customers deal with exponentially growing amounts of unstructured data from sources such as social media, biometrics and criminal databases.
About 900 Algorithmics employees will join IBM’s software group upon closing of the deal.
Algorithmics, which generated revenue of $163.7 million in 2010, is a member of Fitch Group, majority-owned by Paris-based Fimalac , a holding company based in Paris. (Reporting by Soham Chatterjee in Bangalore; Editing by Dan Lalor and Will Waterman)