IBM is to acquire Algorithmics, a financial services risk management specialist, for $387m.
The company provides risk analytics software, content and advisory services for banking, investment and insurance businesses.
Laurence Trigwell, worldwide executive, financial services business analytics at IBM, said the acquisition will help IBM support the regulatory compliance requirements of clients in financial services and insurance.
"The two drivers are the emerging regulatory environment, which is becoming more prescriptive and analytical, and disclosure. Regulators require banks to hold increased amounts of capital to avoid government bailouts, This has created demand for stress testing, which is being used internally at banks," he said.
IBM has invested in 26 analytics businesses over the last few years, spending $14bn. These analytics tools cover predictive analytics , strategy modelling, business planning, and workflow analysis. Through its services arm, IBM says the tools allow it to help clients deliver greater business value.
The acquisition follows IBM's plans to buy anti-fraud software specialist i2.