In a deal announced this week, Algomi, a company that offers tools for buy-side and sell-side trading in fixed income securities, has acquired ALFA (Automated Liquidity Filtering & Analytics) from AllianceBernstein. The acquisition includes the IP and technology behind ALFA as well as the brand name. As a part of the acquisition, AllianceBernstein is taking an undisclosed, minority stake in Algomi, as well as a seat on the company’s Board.
Originally developed as an in-house liquidity tool, ALFA is now called Algomi ALFA. The solution provides cross-market information on liquidity and trading to give the buy-side a real-time view of the entire bond market. Algomi, which AllianceBernstein selected via a competitive process to take over ALFA, will become the sole marketer of Algomi ALFA, which will be sold to buy-side fund managers.
At FinovateFall 2014, Algomi debuted Honeycomb, a buy-side GUI that helps investors see which dealer is best to facilitate illiquid block trades without disturbing the market. Founded in 2012, Algomi has 140 employees with offices in London, New York, and Hong Kong. Earlier this year, the company received a $10 million investment from Euronext, boosting its funding to more than $10 million after Thomson Reuters CEO Tom Glocer invested an undisclosed amount of capital in a 2016 round.