The news that IBM is buying Algorithmics for $387 million is yet another deal by Big Blue that enhances its analytical, risk management and financial expertise.

Over the last five years, IBM has spent more than $14 billion on 25 acquisitions focused on analytics to help its customers deal with "exponentially growing amounts of unstructured data from sources such as social media, biometrics and criminal databases," notes Reuters. On Wednesday, IBM announced it will buy British security analytics software firm i2 for an undisclosed sum.

Algorithmics has certainly built a strong brand in the financial services industry. It counts 25 of the 30 largest banks among its more than 300 financial services clients. The acquisition will give IBM an even better story when it comes to banks. The acquisition expands IBM's business analytics capabilities by helping clients quantify, manage and optimize their risk exposure across a range of financial risk domains, including market, liquidity, credit, operational and insurance as well as economic and regulatory capital. New regulations such as Basel III and the recent financial crisis have upped the risk management stakes for banks across the globe. Algorithmics' risk advisers will enhance IBM's Business Analytics and Optimization practice, which has nearly 8,000 consultants, including almost 300 researchers, and a network of solution centers.

For more:
- here's the release

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