IBM adds to software might

Big Blue loosens its acquisition purse strings to snap up Algorithmics and i2

IBM has bolstered its software portfolio by making two acquisitions in as many days, snapping up Algorithmics and i2.

Big Blue claimed its $387m (£238m) acquisition of risk analytics firm Algorithmics will expand its business analytics capabilities in the financial services industry.

The deal is subject to regulatory clearances and when completed will add about 900 employees to IBM’s software group.

Rob Ashe, general manager of business analytics at IBM, said: “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.

“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.”

In a separate transaction, for an undisclosed sum, IBM bought intelligence analytics firm i2, which will also be integrated into the IBM software group. The firm has 4,500 customers in 150 countries and has offices based in Cambridge and Virginia. Its clients include businesses in the banking, defence, healthcare, insurance, law enforcement, national security and retail sectors.

Craig Hayman, general manager of industry solutions at IBM, said: “IBM’s goal is to better equip public safety officials and businesses with the information and tools they need to ensure safer cities.

“The combined capabilities of IBM and i2 will help customers uncover patterns and trends that will allow them to more effectively protect the privacy and safety of citizens, businesses and governments.”