The acquisition is part of Algorithmics' overall corporate strategy to grow its portfolio of risk-aware business applications that support clients' decision making and business growth strategies.

Algorithmics acquired VIPitech's software solutions, intellectual property, infrastructure and the VIPitech team, including development, support, sales and marketing. The terms of the acquisition were not disclosed and it is not expected to have a material impact on Algorithmics' financial results.

This acquisition affirms Algorithmics' commitment to the insurance and pension fund sectors and to maintaining VIPitech as industry leading actuarial software. The combination of Algorithmics' risk management and portfolio modelling solutions with VIPitech's actuarial solutions will enable clients to benefit from the inherent synergies of bringing together two complementary and successful businesses.

The VIPitech solutions have a global client base with strong representation in Asia. They comprise two versions: a desktop modelling tool and an enterprise server version. Insurance companies and pension funds use the solutions to value and manage their business. The solutions support the production of comprehensive risk and value metrics which provide valuable management information to support decision making and regulatory reporting.

Dr Michael Zerbs, President and COO of Algorithmics, commented: "This acquisition is part of our strategy to extend our solutions beyond risk management into risk-aware applications that help our clients in their business decisions. The addition of VIPitech underscores Algorithmics' commitment to providing market leading solutions to pension funds and insurers. Algorithmics' clients already include more than half of the members of the prestigious CRO Forum and VIPitech has a broad spectrum of financial services clients, including many tier 1 to 3 insurers worldwide. VIPitech clients will benefit from Algorithmics' renowned technology expertise, focus on sustained investment in R&D and client support capacity. We are delighted to welcome the VIPitech team and clients to the Algorithmics community."

Dr Andrew Aziz, Executive Vice President, Buy-Side Solutions, Algorithmics, added: "Coupling Algorithmics' range of investment risk and portfolio management solutions with VIPitech's broad financial modelling capabilities means that we can now provide an integrated approach to asset and liability modelling for the insurance and pension fund sectors that will be industry leading. Traditionally, institutions have managed their assets and liabilities as distinct silos with vendors developing risk management systems focused on one or the other. The recent market turmoil has driven insurers and pension funds to move towards managing the risk of their entire balance sheet more holistically. It is Algorithmics' strategy to develop our solutions with this perspective in mind."

Candice Thompson, Head of the VIPitech business, said: "We are excited to become a part of Algorithmics. Our shared belief in the importance of flexibility, innovation and long term customer relationships bodes well for the future development and evolution of our insurance and pension fund solutions. This transaction is very good news for both our employees and our clients who will benefit from Algorithmics' technology and development expertise and their commitment to investing in the solutions so that they retain their leading-edge position in the market."

Steve Taylor-Gooby, Global Head of Risk Consulting and Software at Towers Watson, said: "This deal has been structured to ensure that VIPitech remains a viably strong and competitive business and that clients remain fully supported. We are satisfied that we have achieved these aims through the sale to Algorithmics and look forward to continuing to serve our clients that are already using VIPitech."