IBM Acquiring Algorithmics For $387 Million
International Business Machines Corp. (NYSE:IBM) has acquired Toronto-based analytics software company Algorithmics for $387 million in cash. The deal is expected to close by the end of October.
“We see risk analytics as a critical component of that analytical insight, driven by market factors and events over the last 10 years since Basel II (banking regulations) and over the last three or four since the financial crisis,” stated IBM head of business analytics for financial services Laurence Trigwell. “(Alogrithmics’) heritage in helping banks produce risk models is incredibly important to help respond to regulatory pressures.”
In the past five years, IBM spent over $14 billion on 25 acquisitions that is focused on analytics. IBM expects revenue from business analytics to hit $16 billion. About 900 Algorithmics employees will be joining IBM’s software groups. Algorithmics generated $163.7 million in 2010 revenues.
[Reuters]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry