US-headquartered i2 has clients in banking, defense, healthcare globally
IBM has signed a definitive agreement to acquire i2, a security intelligence analytics company.
With the acquisition, IBM hopes to grow its business analytics initiatives and help clients in the public and private sectors address crime, fraud and security threats.
Under the terms of the agreement, i2 will be integrated into IBM’s Software Group. Financial terms were not disclosed.
i2 provides intelligence analytics for crime and fraud prevention based in Cambridge, UK with US headquarters in McLean, Va.
IBM said that with over 4,500 customers in 150 countries, i2’s clients span multiple sectors globally such as banking, defense, health care, insurance, law enforcement, national security and retail.
i2 tools are currently used by 12 of the top 20 retail banks globally and eight of the top 10 largest companies in the world, said IBM.
IBM Industry Solutions general manager Craig Hayman said, "IBM’s goal is to better equip public safety officials and businesses with the information and tools they need to ensure safer cities."
"The combined capabilities of IBM and i2 will help customers uncover patterns and trends that will allow them to more effectively protect the privacy and safety of citizens, businesses and governments," Hayman added.
i2 CEO Robert Griffin said, "The combination of i2’s products and IBM’s advanced data collection and warehousing technologies will be compelling for clients seeking to enhance situational awareness and make connections between seemingly unrelated information from oceans of data."
Griffin added, "i2’s existing clients will be at home with IBM, a company known for its ability to help organizations make the most of their data assets."
Following the announcement of i2 acquisition, IBM also said that it will acquire Candian risk analysis group Algorithmics for $378m, to enable the US business and software services group to asses risk on behalf of financial services company.
IBM will be joined by the 900 employees of Algorithmics, a member of the Fitch group, which is majority owned by a France-based holding company Fimalac.
The employees will be a part of IBM’s business analysis and optimisation division.
Tim Jennings, Ovum chief analyst, said these acquisitions suggest analytics will be the next big area the software giants will focus on.
"With its pending acquisition of financial risk management specialist Algorithmics, IBM continues to broaden its governance, risk, and compliance (GRC) portfolio. Algorithmics addresses the increasing requirement for risk analysis in the wake of post-financial crisis legislation, and is a strong fit with IBM’s existing OpenPages solutions for operational and IT risk, which are already used by many financial institutions," he said.
"It comes hot on the heels of yesterday’s announcement from IBM of its agreement to acquire i2, which specialises in intelligence analysis in the government and defence sectors. Having built up strong capabilities in GRC and information analytics, IBM will be able to apply these in a range of industry and public sector scenarios.
"Coupled with HP’s recently announced acquisition of Autonomy, this underlines the importance of analysing both structured and unstructured information to create business insights, as being the next battleground for the major enterprise software vendors," Jennings added.