Fitch Group, parent company of Fitch Ratings, has signed a definitive agreement to acquire Canada's Algorithmics, a privately-held risk management vendor, for $175 million.
Founded in 1989 Toronto-based Algorithmics provides enterprise risk management software to global financial institutions. The company serves over 150 clients including Bank of America, Commonwealth Bank of Australia, ING Group, Société Générale, Westpac, National Bank of Greece, Banco de Mexico and Bloomberg.
Algorithmics has regional offices in Bridgetown, Frankfurt, Johannesburg, London, Madrid, Mexico City, New York, Paris, Philadelphia, São Paulo, Singapore, Sydney, Tokyo and Vienna.
Earlier this year the firm won long-term refinancing from its existing investors - which include Morgan Stanley, Commerzbank, American International Group (AIG), CIBC Capital Partners, Royal Bank of Canada. The company reported revenues of more than US$77 million for the twelve months ending 31 January 2002.
Fitch says the acquisition will expand the customer base and product offerings of its current risk management services. Stephen Joynt, president and CEO, Fitch, adds: "The expertise of Algorithmics enhances Fitch's core ratings business by extending its quantitative capabilities."
Fitch Group merged with London-based credit ratings company IBCA in 1997. Through the merger Fitch became owned by Fimalac, a holding company which acquired IBCA in 1992.
Fitch Group went on to acquire Chicago-based Duff & Phelps Credit Rating Company and the rating business of Thomson BankWatch in 2000.