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IBM Offloads Algorithmics Assets to SS&C

IBM continues to trim assets in wake of Red Hat acquisition

By CBR Staff Writer

IBM has offloaded its Algorithmics assets to investment software and services company SS&C Technologies for an undisclosed sum — eight years after buying it for $387 million from Fitch Group parent Fimalac.

Algorithmics provides risk analytics software and advisory services to banking, investment and insurance businesses. IBM offered its services as a managed cloud-based service, on-premises software, or hybrid offering.

IBM Algorithmics has over 200 clients and 350 employees, SS&C said.

IBM has been divesting a range of assets in the wake of its landmark $34 billion Red Hat acquisition, which closed in July.

In December 2018 it sold seven software products to HCL Technologies for $1.8 billion, including Appscan, BigFix and Unica; respectively tools for secure app development, device management, and marketing automation.

That came after IBM chairman Ginni Rometty told investors on a conference call: “I won’t be shy about divesting what we need to divest.”

Algorithmics helps banks produce risk models. The tools sold by IBM 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 companies we serve face a rapid pace of regulatory change and increasing need for integrated real-time and predictive analytics,” said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies.

“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.”

“We are excited to join the SS&C team. SS&C’s commitment to monitoring and delivering solutions for industry regulations in support of clients mirrors Algorithmics’ commitment to do the same,” said Mina Wallace, who, upon close of the acquisition, will become senior VP and GM, SS&C Algorithmics.

“Together with SS&C, we will be able to accelerate delivery of all solutions on the cloud and provide thought leadership in risk management.”

SS&C has been on a software shopping spree of late: weeks earlier it agreed to buy Investrack, which provides a tool designed for private bank, wealth and investment management firms, from UAE-based Globacom Technologies.

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