IBM seems to have purchased Algorithmics from Fitch Ratings for $375m, who bought the company in 2004 for $175m. Algorithmics are one of the main competitors that Razor faces when trying to win credit exposure or market risk business in the banks. Algorithmics has a current revenue of $163.7m in the past financial year, about 16 times that in Razor's most recent end of year report (about $10m). A very simplistic ratio analysis would therefore value Razor at around $22m. Trading at 1.4c, with 290m shares issued, the current market cap is around $4m. There is also the potential takeover premium if a large competitor to IBM, or Markit, who recently purchased another Razor competitor, Quic, decided they wanted a suite of risk analytics.
Anyone know what Quic's revenue was when they were bought? Anyone know how much Markit paid for Quic?
RZR Price at posting:
1.4¢ Sentiment: None Disclosure: Not Held
