Algorithmics has acquired collateral management software supplier Sentry Financial Systems. The acquisition was made possible by a $60 million private financing investment in Algorithmics by Morgan Stanley, AIG, CIBC Capital Partners and Royal Bank Capital Partners. The proceeds will be spent on further acquisitions, R&D and debt repayment.
The Sentry product records and tracks master/collateral agreement information and calculates margin call requirements. Additionally, Sentry monitors the status of collateral obligations, collateral inventories and provides management information.
Ron Dembo, Algorithmics president and CEO, says integrating Sentry and Algo Suite will take collateral management to the next level by creating the industry's first "forward-looking collateral risk management solution".
The firm will build interfaces between the two product that will provide Sentry data to the risk simulations in Algo Suite, and between Algo Suite's risk analytics and Sentry's products. In the meantime, both sets of products will continue to be offered on a standalone basis.