IBM buys software firm

IBM has agreed to buy Toronto-based risk analytics software firm Algorithmics for $387m (£240m) in cash to enhance its financial services capabilities.

The computing giant said the deal, which is expected to close before the end of October, expands its business analytics capabilities by helping clients manage financial risk.

Algorithmics’ risk analytics software, content and advisory services are used by banking, investment and insurance businesses to help assess risk, address regulatory requirements and make more insightful business decisions.

In five years, IBM has spent more than $14bn on 25 acquisitions focused on analytics. Earlier this week IBM said it would buy British security analytics software firm i2.