// startup autopsy

Algorithmics

Risk analytics pioneer absorbed by Big Blue

acquisition gone wrongAcqui-hire

Fatal mistake: Algorithmics was acquired by IBM in 2011 and subsequently lost its independent identity as it was absorbed into IBM's enterprise software division and later divested.

Founded	1989
Closed	2011
Country	Canada
Sector	Fintech

50%

Key Events Timeline

1989-01-01

FOUNDING

Algorithmics founded in Toronto by Ron Dembo to develop financial risk management software.

2000-01-01

PRODUCT LAUNCH

Algorithmics establishes itself as a leading enterprise risk analytics platform used by major global financial institutions.

2011-09-01

ACQUISITION ATTEMPT

IBM announces acquisition of Algorithmics for approximately $387M to strengthen its financial services software portfolio.

2013-01-01

PIVOT

IBM divests Algorithmics to Fitch Group, ending the brand's independent chapter under IBM ownership.

2013-12-01

SHUTDOWN

Algorithmics as an independent entity ceases to exist, fully integrated into Fitch Solutions under Fitch Group ownership.

Full Analysis

Analyst plan

Documented cause

Algorithmics, a Toronto-based financial risk analytics firm founded to provide sophisticated risk management software solutions, was acquired by IBM in 2011 for approximately $387 million. However, this acquisi...

tion ultimately represents a failure of the original business model and mission. Rather than continuing as an independent entity or maintaining its product line post-acquisition, Algorithmics was abso

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€0.4M

Peak valuation

HypeCycle · MoatType · ResearchTags

Algorithmics raised €0.2M before algorithmics was acquired by ibm in 2011 and subsequently lost its independent identity as it was absorbed into ibm's enterprise software division and later divested. ended it. See the documented cause, verified lesson and all failure signals.

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