IBM has agreed to acquire Algorithmics in an effort to strengthen its financial analysis and risk assessment offerings.
The company will pay $387m to buy Toronto-based Algorithmics, which specialises in risk analysis tools for financial institutions.
"Today's economic environment demands that financial institutions have more cash on hand, a better understanding of their financial standing and the ability to deliver more transparency to stakeholders," said IBM business analytics general manager Rob Ashe.
"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 will integrate Algorithmics into its software group alongside recently acquired investment analysis firm OpenPages. The company plans to add some 900 Algorithmics employees following the closing of the deal.
IBM hopes that the acquisition will strengthen its risk consulting and financial services offerings, pointing to Algorithmics' strength in areas such as credit and market risk.
The move is part of IBM's ongoing effort to beef up its business analytics and optimisation branch. The company has spent some $14bn on acquisitions for the business unit in the past five years and has amassed 8,000 consultants.
Ovum chief analyst, Tim Jennings, argued that Algorithmics' technology is becoming increasingly important to firms as they look to risk analysis tools in the wake of post-financial crisis legislation, and will be a strong fit with OpenPages.
"It comes hot on the heels of yesterday's announcement from IBM of its agreement to acquire i2, which specialises in intelligence analysis in the government and defence sectors," he added.
"Having built up strong capabilities in GRC and information analytics, IBM will be able to apply these in a range of industry and public sector scenarios."
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