Fitch to acquire Algorithmics

Mumbai: The Fitch group today announced that it had executed a definitive agreement to acquire Algorithmics, a leading enterprise risk management solution provider, for $175 million. The transaction is expected to close in January 2005, subject to customary regulatory approvals.

Fitch, a wholly owned subsidiary of Fimalac SA, Paris, France, is the parent company of Fitch Ratings, a leading global rating agency dual-headquartered in New York and London, with more than 50 locations worldwide, operating in more than 80 countries. It operates in India through Fitch Ratings India, a 100 per cent subsidiary with offices in Mumbai, Delhi, Chennai and Kolkata.

Algorithmics, a privately-held Canada-based company founded in 1989 in Toronto, provides the advanced Algo Suite of enterprise risk management solutions and has completed over 170 installations to 150 clients in 31 countries, through its 15 offices worldwide.

The acquisition will expand the customer base and product offerings of Fitch's risk management services. Algorithmics will benefit from the new ownership, strengthening its ability to invest in product development and expand its geographic reach.

Recent market volatility and events have made the need to measure and manage market, credit, asset and operational risk an imperative for financial institutions and asset managers. Fitch Risk's operational and credit risk data, software and consultative tools complement Algorithmics' Algo Suite enterprise risk management solutions.

Fitch president and CEO Stephen W Joynt said: "The expertise of Algorithmics enhances Fitch's core ratings business by extending its quantitative capabilities." Algorithmics President and COO Dr Michael Zerbs added: "We will continue to focus on producing the best quality enterprise risk management solutions, solidifying out leading market position."