IBM brings another analytics company under Big Blue umbrella

IBM Corp. continues its international shopping spree for analytics companies with the announced agreement to acquire Algorithmics Inc., for approximately $387 million.

The company is a Toronto-based risk analytics firm whose 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, IBM said in a Sept. 1 announcement.

Approximately 900 Algorithmics employees will join IBM's Software Group when the acquisition is finalized.

On Aug. 31 IBM announced its was acquiring i2, a provider of intelligence analytics for crime and fraud prevention based in Cambridge, England, that also will become part of the Software Group upon completion of the purchase.

“i2 is an example of how acquisitions can play a role in expanding IBM’s presence at the government level outside the United States,” according to the analysis firm TBR.

The acquisition brings IBM a strong presence in a number of European government organizations, as the company has 25 of the 28 NATO member nations as customers, TBR said.

This acquisition of Algorithmics expands IBM's business analytics capabilities in the financial services industry by helping clients 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, the company 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.

Algorithmics is a member of Fitch Group, which is majority owned by Fimalac, a holding company based in Paris.

IBM Corp., of Armonk, N.Y., ranks No. 21 on Washington Technology’s 2011 Top 100 list of the largest federal government contractors.