Towers Watson Sells VIPitech Unit to Fitch’s Algorithmics

June 24, 2010

Global professional services company Towers Watson announced that it has sold its “VIPitech, an actuarial and financial modelling software unit,” to Algorithmics, a unit of the Fitch group, in accordance with commitments it made to the European Commission (EC). “The sale of VIPitech was a condition to the EC’s clearance of the merger between Watson Wyatt and Towers Perrin,” the bulletin explained.

Steve Taylor-Gooby, global head of Risk Consulting & Software at Towers Watson, described the sale as being “structured to ensure that VIPitech remains a viably strong and competitive business and that clients remain fully supported. We are satisfied that we have achieved these aims through the sale to Algorithmics and look forward to continuing to serve our clients that are already using VIPitech.”

The bulletin also explained that as “part of the sale Towers Watson will retain a license to use the VIPitech software to enable it to support its current and future clients who use VIPitech. In addition, Towers Watson has agreed to assist Algorithmics while the VIPitech business is being established.”

Algorithmics President and COO, Dr. Michael Zerbs, indicated that the acquisition forms part of the Company’s strategy to “extend our solutions beyond risk management into risk-aware applications that help our clients in their business decisions. The addition of VIPitech underscores Algorithmics’ commitment to providing market leading solutions to pension funds and insurers.”

He also noted that Algorithmics’ clients “already include more than half of the members of the prestigious CRO Forum and VIPitech has a broad spectrum of financial services clients, including many tier 1 to 3 insurers worldwide. VIPitech clients will benefit from Algorithmics’ renowned technology expertise, focus on sustained investment in R&D and client support capacity. We are delighted to welcome the VIPitech team and clients to the Algorithmics community.”

Source: Towers Watson, Algorithmics

Topics Mergers & Acquisitions

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