Algoryx Simulation AB was formed 2007 as an off-spring from Umeå university, involving researchers from the High Performance Computing Center North (HPC2N), VRlab, and the departments of Computing Science and Physics. The off-spring is also result of a long and prosper R&D collaboration between the university and former off-spring company Oryx Simulations AB, today a world leader in professional heavy vehicle simulators.

In 2007 a team of developers and researchers gathered to design a next-generation multiphysics engine with fidelity, performance, functionality and extensibility that surpasses comparable solutions on the market of which many have the limited scope of game physics. Algoryx currently engages 13 people of which several have 10-15 years of experience of interactive simulation.