IBM To Sell Algorithmics Portfolio To SS&C

Big Blue will sell the fintech provider a slate of financial risk management products it purchased eight years earlier and has been building out since.


IBM is offloading a slate of risk management analytics products it sells to hundreds of financial services customers in a deal revealed Wednesday with SS&C Technologies Holdings.

SS&C, which delivers financial management and investment technologies and services to several industries, has agreed to buy the assets springing from IBM's 2011 acquisition of Toronto-based Algorithmics.

The fintech provider based in Windsor, Conn. - No. 21 on the CRN Solution Provider 500 - said in a prepared statement it would take over "certain Algorithmics and related assets from IBM." Financial terms of the deal, expected to close in the fourth quarter, were not disclosed.

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[Related: SS&C To Purchase Financial, Health-Care Solution Provider DST Systems For $5.4 Billion]

The Algorithmics portfolio "will extend SS&C's risk analytics and regulatory offering," the company said.

"Algorithmics' cloud-based technology will integrate within SS&C's platform and add micro-services."

IBM declined to provide more information to CRN related to the deal.

Once the purchase is completed, SS&C will inherit over 200 existing IBM clients across the financial services industry, including large banks, brokers, asset managers, hedge funds and private equity funds. It will also bring into its fold 350 former Big Blue employees and offices in 25 countries.

Algorithmics' solutions focus on market, credit and liquidity risk, and capital management. They include

X-Value Adjustment (xVA), Fundamental Review of the Trading Book (FRTB), Standardized Approach for Counterparty Credit Risk (SA-CCR), Current Expected Credit Losses (CECL) and Targeted Review of Internal Models (TRIM).

"The addition of Algorithmics enables us to empower clients in the global financial services industry with innovative, cloud-based solutions and premium services to help them navigate enterprise risk successfully," SS&C CEO and Chairman Bill Stone said in a prepared statement.

IBM bought Algorithmics eight years ago as it looked to build up a business analytics portfolio.

Prior to the 2011 sale, the Toronto-based company focused on helping its clients assess financial risk, make business decisions and comply with regulatory requirements. It also provided risk assessment advisory services.

In the years since, Armonk, N.Y.-based Big Blue has bulked up those Algorithmics offerings with an analytics portfolio that's expanded organically and through dozens of acquisitions made in the years leading up to and after the acquisition.

IBM combined the software with its predictive analysis software and with the OpenPages risk and compliance management software it acquired in September 2010.

SS&C has been looking to bulk up its own services portfolio. In July, the company offered $155 million in a nonbinding proposal to acquire GBST Holdings, an Australia-based provider of financial technology.