Algorithmics has enticed its first European backer, Commerzbank, to join the ranks of new investors participating in the strategic financing of the company.
The Canadian risk management outfit also reports that the VenGrowth Investment Fund has converted its initial investment - announced in September when the latest round of financing opened - from debt to convertible notes. Combined, the contributions from VenGrowth and Commerzbank runs to $25 million, increasing the amount raised in the private financing to $85 million.
Commerzbank joins other investors, Morgan Stanley, AIG, CIBC Capital Partners and Royal Bank Capital Partners in backing Algorithmics.
The addition of the German bank to the ranks of new investors meets a key goal of Algorithmics' management - to bring a major European investor in to the round. The company says Commerzbank's participation will provide additional insight in to the European market, which currently provides more than half of Algorithmics' annual revenues.
Ron Dembo, Algorithmics president and CEO says the investment will be used to support the marketing and development of the company's recently introduced Mark-To-Future framework for measuring risk and reward.