Financial Algorithms Calculates $4 Billion Bid

An unidentified foreign company has offered $4 billion for Financial Algorithms, a programming service-provider for hedge funds and traders, Calcalist reported today without saying where it got the information.

Financial Algorithms, founded in 2001 with offices in Herzliya, Israel, is considering the offer, Calcalist said on its website, naming possible buyers as Chicago-based Citadel LLC or New York-based Renaissance Technologies LLC.

Financial Algorithms employees said no one was available to comment when contacted by phone on Sunday and there was no immediate reply to an e-mail sent to the company. Citadel and Renaissance didn’t immediately respond to e-mails seeking comment.

An acquisition of Financial Algorithms for $4 billion would be one of the largest of an Israeli company on record. Lucent Technologies acquired Chromatis Networks in 2000 for more than $4 billion, Cisco bought NDS Group in 2012 for $5 billion, and Berkshire Hathaway paid $4 billion in 2006 for an 80 percent stake in Iscar Metalworking.

Financial Algorithms employs about 100 workers in Herzliya and posted a profit of $330 million in 2013, Calcalist said.

This article appeared in print in the June 30th, 2014 edition of Hamodia.