SunGard has bought Kiodex, Inc., a supplier of Web-based risk management, financial reporting, FAS 133 compliance and market data solutions for companies exposed to commodities risk. Kiodex solutions– Kiodex Risk WorkBench and Kiodex Global Market Data– are delivered via an application service provider (ASP) framework. The price was not disclosed.
The acquisition of Kiodex expands SunGard’s portfolio of ASP-based risk services. It provides SunGard with ASP-based solutions for managing commodities risk, serving corporate end-users, energy producers and intermediaries, and financial institutions and hedge funds that trade commodities. Kiodex solutions are complementary to those that SunGard offers in each of these sectors, including AvantGard, Entegrate, Adaptiv, Reech and FAME.
The Kiodex Risk Workbench is a Web-based application that provides companies, banks, and hedge funds with the critical components required to hedge and trade commodities: deal capture, valuation models, risk reporting, and back-office functionality. In addition, the Kiodex Risk Workbench has integrated FAS 133 and IAS 39 modules. Kiodex also offers over 125 forward curves in the crude, natural gas, refined products, power and metal markets, used by many energy companies for compliance with Sarbanes-Oxley.
Kiodex will be an operating unit of SunGard Trading and Risk Systems, headed by Raj Mahajan as president. Tom Farley and Charles Reyl will assume key executive positions in the new business unit as chief operating officer and vice president, financial engineering, respectively.
Raj Mahajan, president of the Kiodex operating unit of SunGard Trading and Risk Systems, said, “The 19 new customers we signed in 2004 demonstrate the growing demand for Web-based risk management services. The current environment of high energy prices, escalating volatility, and increasing regulatory scrutiny is motivating a broad spectrum of corporations to implement or revisit their risk management frameworks. As part of SunGard we aim to continue our rapid pace of growth by leveraging its financial resources and global distribution channels.”
Jim Ashton, group chief executive of SunGard Trading and Risk Systems, said, “Our acquisition of Kiodex further strengthens our position in the ASP delivery space for risk management, an area that we currently serve with our Adaptiv solution for global credit risk management and Reech solutions for derivatives valuations and buy-side risk. Kiodex supplements this offering by addressing the need for commodities risk management across various sectors. It also helps customers to meet regulatory compliance according to the fair value accounting rules in the US (FAS 133) and Europe (IAS 39).”