• Home
• News
• Press Releases
• 2004

Press Releases

Toronto, Canada - December 17, 2004 -

Acquisition of Enterprise Risk Management leader reinforces Fitch's commitment to develop world-class risk management services; strengthens Algorithmics' business lines and extends depth in new markets

Acquisition complements Fitch's core credit ratings business; extends quantitative capabilities
Fitch Group - New York - December 17, 2004 - Fitch Group, a Fimalac SA company, today announced that it has executed a definitive agreement to acquire Algorithmics, a leading solution provider, innovator and thought leader in enterprise risk management.

The transaction, valued at $175 million, is expected to close in January 2005. The transaction is subject to customary regulatory approvals.

Algorithmics, a privately held Canadian based company founded in 1989, provides some of the most advanced enterprise risk management solutions to financial institutions around the world to help them better understand their financial risk.

The acquisition will expand the customer base and product offerings of Fitch's current risk management services. Algorithmics will benefit from the new ownership, strengthening its ability to invest in product development and expand its geographic reach. Fitch Risk's operational and credit risk data, software and consultative tools complement Algorithmics' Algo Suite enterprise risk management solutions.

Marc Ladreit de Lacharrière, founder and CEO of Fimalac, and chairman of Fitch said, 'The purchase of Algorithmics is the latest in a series of business and technology initiatives furthering our goal of creating world-class risk management products. This will undoubtedly enhance Fitch's overall value proposition to the market."

Stephen W. Joynt, President and CEO of Fitch added, "Together, Fitch and Algorithmics can further the technological development of enterprise risk management solutions, bringing them to a wider array of global organizations. Additionally, the expertise of Algorithmics enhances Fitch's core ratings business by extending its quantitative capabilities."

Dr. Michael Zerbs, the President and Chief Operating Officer of Algorithmics, said: 'By teaming up with Fitch, we join an organization with a solid reputation for developing high quality risk and credit analysis. We will continue to focus on producing the best quality enterprise risk management solutions, solidifying our leading market position.'

Recent market events and market volatility have made the need to measure and manage market, credit, asset and operational risk an imperative for financial institutions and asset managers. Algorithmics has been effectively meeting this market demand, providing more than 150 of the world's leading financial institutions with enterprise risk management solutions, and has completed over 170 installations in 31 countries around the globe.

About Algorithmics
Founded in 1989, Algorithmics is a recognized leader in enterprise risk management. Following its acquisition by the Fitch Group in January 2005, Algorithmics is the world's leading provider of enterprise risk management solutions and services that enable financial institutions to effectively understand and manage their financial risk. Algorithmics has over 200 clients, including more than 60 of the 100 largest financial institutions in the world. Algorithmics was recently recognized as the dominant enterprise risk solution provider in market, credit and operational risk in Risk Magazine's 2004 Technology Rankings.

About Fitch Group
Fitch Group is the parent company of Fitch Ratings, a leading global rating agency committed to providing the world's credit markets with accurate, timely and prospective credit opinions. Fitch Ratings is dual-headquartered in New York and London, operating offices and joint ventures in more than 50 locations and covering entities in more than 80 countries. Fitch Group is a wholly owned subsidiary of Fimalac, S.A., an international business support services group listed and headquartered in Paris, France.

About Fimalac
FIMALAC is an international business support services group based in Paris, with offices and operations in 40 countries and 7,500 employees around the world. The company's focus is comprised within three main areas; financial services through the operations of Fitch, industrial services through diversified operations in the hand tool and garage equipment markets with FACOM. Mr. Marc Ladreit de Lacharriere, is the founder and CEO of FIMALAC and is also Chairman of Fitch.

 ©2004 Algorithmics Incorporated. All rights reserved. ALGO, ALGORITHMICS, AI & design, MARK-TO-FUTURE, ALGO CAPITAL, ALGO COLLATERAL, ALGO CREDIT, ALGO MARKET, ALGO OPVANTAGE, ALGO RISK, and ALGO SUITE are trademarks of Algorithmics Trademarks LLC.

• Terms of Use & Legal Information
• Privacy Policy