ITG Agrees to Sell ITG Investment Research
May 10 2016 - 8:00AM
ITG (NYSE:ITG), a leading independent broker and financial
technology provider, today announced that it has signed a
definitive agreement to sell ITG Investment Research to Leucadia
National Corporation (NYSE:LUK), a diversified holding company.
Subject to customary conditions, the transaction is expected to
close at the end of May 2016. Upon close, ITG Investment Research
will operate as M Science.
Under the terms of the agreement, Leucadia will acquire ITG
Investment Research for $12 million in cash. ITG expects
to generate a net increase in cash of more than $5 million.
ITG does not expect to book a material gain or loss from this
transaction after related costs and taxes and the write-down of the
remaining intangibles associated with ITG Investment Research.
ITG Investment Research currently provides data driven research
in the Consumer, Telecom, Media, Technology and Macro sectors,
covering more than 200 companies.
ITG will continue to deliver energy research to institutional
investors under its prior agreement following the sale of RS Energy
Group to an affiliate of Warburg Pincus in December
2015.
ITG also announced today that it plans to take a restructuring
charge of approximately $1.6 million to reduce the headcount within
its U.S. high-touch sales trading operation as a result of this
sale. ITG expects to realize cost savings of approximately $3
million annually as a result of this action.
Commenting on the sale, ITG Chief Executive Officer and
President, Frank Troise, said, “The sale of our remaining research
operations and the associated cost reduction measures we took today
provide clarity to our clients, our shareholders and our employees
that our strategic focus and resource allocation will be applied to
our core capabilities in execution, liquidity, platforms and
analytics. We thank our colleagues for their dedication and
contributions to our firm.”
ITG will provide more details about these developments,
including forecasted impacts on revenues and expenses, after the
transaction closes.
About ITG
ITG is an independent broker and financial technology firm that
improves the efficiency and execution quality of institutional
trading. ITG helps clients understand market trends, mitigate risk
and navigate increasingly complex markets. A leader in electronic
trading since launching the POSIT® crossing network in 1987, ITG
takes a consultative approach in delivering the highest quality
execution and liquidity solutions along with workflow tools and
analytics. The firm is headquartered in New York with offices in
North America, Europe, and the Asia Pacific region. For more
information, please visit www.itg.com.
In addition to historical information, this press release may
contain "forward-looking" statements that reflect management’s
expectations for the future. A variety of important factors
could cause results to differ materially from such
statements. Certain of these factors are noted throughout
ITG’s 2015 Annual Report on Form 10-K, and its Form 10-Qs (as
amended, if applicable) and include, but are not limited to,
general economic, business, credit and financial market conditions,
both internationally and domestically, financial market volatility,
fluctuations in market trading volumes, effects of inflation,
adverse changes or volatility in interest rates, fluctuations in
foreign exchange rates, evolving industry regulations and increased
regulatory scrutiny, customers’ reactions to the settlement in
August 2015 with the Securities and Exchange Commission, the
outcome of contingencies such as legal proceedings or governmental
or regulatory investigations, the volatility of our stock price,
changes in tax policy or accounting rules, the actions of both
current and potential new competitors, changes in commission
pricing, rapid changes in technology, errors or malfunctions in our
systems or technology, cash flows into or redemptions from equity
mutual funds, ability to meet liquidity requirements related to the
clearing of our customers’ trades, customer trading patterns, the
success of our products and service offerings, our ability to
continue to innovate and meet the demands of our customers for new
or enhanced products, our ability to protect our intellectual
property, our ability to execute on strategic transactions or
initiatives, our ability to attract and retain talented employees,
and our ability to pay dividends or repurchase our common stock in
the future. The forward-looking statements included herein
represent ITG’s views as of the date of this release. ITG
undertakes no obligation to revise or update publicly any
forward-looking statement for any reason unless required by
law.
Investor/Media Contact:
ITG
J.T. Farley
+1 212 444 6259
corpcomm@itg.com
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