TORONTO Algorithmics, a vendor of risk management software, has received $60 million of private financing from American International Group Inc., Morgan Stanley International Inc., CIBC Capital Partners, and Royal Bank Capital Partners.
The Toronto software company said it plans to use the money for strategic acquisitions, product development, and debt repayment.
On Sept. 13, the day the financing was closed, Algorithmics announced an agreement to buy Sentry Financial of Mount Laurel, N.J., a privately held provider of collateral management software. Terms of the deal were not disclosed.
Algorithmics plans to integrate Sentrys collateral management products into its credit risk system. The combined system would offer software for counterparty exposure, portfolio credit risk, credit limit management, and collateral management in one framework. Meanwhile, both sets of products would be offered on a stand-alone basis.
Collateral management solutions are becoming increasingly important to the worlds financial institutions, said Ron Dembo, president and chief executive officer of Algorithmics.
