July 13, 2005
- New York, New York and Boston, MA
Investment Technology Group, Inc. (“ITG”) (NYSE: ITG), a leading provider of technology-based equity trading services and transaction research, today announced that it has entered into a definitive agreement to acquire privately-held Macgregor, a leading provider of trade order management technology for the global financial community. The all cash acquisition is valued at approximately $230 million and will be accretive in the first quarter of 2006.
The combined technologies of ITG and Macgregor will provide clients with a best-execution order management system that will closely integrate real-time data, analytics, order management and execution tools into a complete solution for institutional trading desks. The breadth and depth of the combined product offering will strongly position ITG and Macgregor to develop multi-asset class products, to grow internationally, and to attract new customers, including the growing hedge fund market. The transaction is a continuation of ITG’s strategy of expanding partnerships with its clients by providing them with proprietary, comprehensive solutions across the trading spectrum.
Macgregor’s client base consists of over 100 leading buy side institutions with approximately $5.5 trillion in assets under management. ITG and Macgregor have historically partnered by integrating Channel ITG, ITG’s algorithmic servers, and ITG’s Transaction Cost Analysis with Macgregor’s order management system.
“We are responding to the requests of our customers to seamlessly integrate execution and order management technologies to create a unique and highly differentiated ‘best-in-class’ solution spanning portfolio management, compliance, execution, operations, analytics and a financial services network,” said Ray Killian, ITG’s Chairman, President, and Chief Executive Officer. “We recognized the strength of Macgregor’s flexible, end-to-end networked platform and are excited about what this partnership will bring to ITG’s clients, shareholders and employees. This acquisition provides us with a deeper product set, recurring revenue and continued overall diversification.”
ITG remains committed to management’s philosophy of broker neutrality. ITG is a trusted partner to many clients and has a long history of providing execution and transaction cost analysis on a confidential basis. Customers will continue to have the choice of trading through any broker or venue.
The transaction will be financed with cash and bank debt. The transaction is expected to close in 60 to 90 days and is subject to customary closing conditions.
“We are honored to be part of ITG’s already world-class solution,” said Steven Levy, President and CEO of Macgregor. “Macgregor and ITG customers will all benefit significantly from the extensive integration and increased functionality of ITG’s advanced trading products and analytic tools. I look forward to working closely with Ray and his team with whom we have partnered successfully for many years.”
Financial Technology Partners, LLC, and FTP Securities, LLC, served as exclusive strategic advisors to ITG during this transaction. Wachtell, Lipton, Rosen, & Katz acted as ITG’s outside legal counsel. Bear, Stearns & Co. Inc. served as exclusive strategic advisors to Macgregor during this transaction. Mintz Levin acted as Macgregor’s outside legal counsel.