SunGard has acquired ERisk Holdings, Inc., a provider of economic capital management software and risk consulting services to financial institutions.
The price tag of the buyout was not disclosed.
The ERisk organization will be part of SunGard’s BancWare business unit and the BancWare ERisk economic capital management solution will be part of BancWare’s solution suite for asset/liability management (ALM), budgeting and planning, Basel II compliance and profitability.
“As our customers increasingly look to use economic capital management to enhance strategic decision-making, the addition of ERisk to the BancWare group will provide comprehensive economic capital analysis capabilities and complimentary consulting services to support this goal, with the cost and efficiency benefits of an ASP-based delivery method,” said Terence Faherty, president of Sungard’s BancWare business unit.”
BancWare ERisk will be delivered on an ASP basis and will go in hand with BancWare’s solution suite with risk correlation models, credit risk models, proprietary data, and risk management consulting services.
“Competitive and regulatory forces are converging,” said Virginia Garcia, research director of financial services strategies and IT investments at TowerGroup. “As a result, financial institutions are increasingly using economic capital management to help them to make better strategic decisions in product design, customer relationship management and pricing.”