SunGard has acquired ERisk Holdings, a New York-based provider of economic capital management software and risk consulting services to financial institutions.
Terms of the transaction were not disclosed but SunGard says the deal is not expected to have a material impact on its financial results.
Following the acquisition, the ERisk unit will become part of SunGard's BancWare business and ERisk's economic capital management system will be added to the BancWare product suite.
SunGard says the product - called BancWare ERisk - will be delivered on an ASP basis and will provide risk correlation models, credit risk models, proprietary data and risk management consulting services. The system will help financial institutions to deploy an economic capital framework to meet regulatory expectations, including Basel II and SR 99-18.
Terence Faherty, president of SunGard's BancWare business unit, says: "As our customers increasingly look to use economic capital management to enhance strategic decision-making, the addition of ERisk to the BancWare group will provide comprehensive economic capital analysis capabilities and complimentary consulting services to support this goal, with the cost and efficiency benefits of an ASP-based delivery method.
"Our customers will benefit from the combined value of ERisk's risk aggregation capabilities, capital management framework and well-established risk management consulting practice, coupled with SunGard's complete offering for risk, ALM and compliance."