NEW YORK and LOS ANGELES, Sept. 19 /PRNewswire-FirstCall/ -- Investment Technology Group, Inc. (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 Plexus Group, Inc., a Los Angeles based firm dedicated to enhancing investment performance. Plexus is a wholly owned subsidiary of JPMorgan Chase Bank, N.A. The all cash acquisition is valued at approximately $12 million. Plexus' revenues in 2004 were approximately $11 million. In 2005, revenues are projected to remain at the same levels and the business is expected to break even.
The acquisition combines the strengths of two leading providers of transaction cost analysis services. ITG and Plexus clients will benefit from a more comprehensive transaction cost analysis product offering. The acquisition also expands ITG's client base into the plan sponsor and sell-side customer segments in the US and Europe. Plexus' customers consist of over 200 financial institutions that collectively transact over $4.5 trillion in equity trading volume.
"This acquisition expands the breadth of ITG's analytical products and increases the range of our client base. ITG is dedicated to helping customers better navigate an increasingly complex marketplace. The combination of Plexus Group's consultative approach to transaction cost analysis with ITG's reputation for superior technology, customer service and support will allow ITG to provide a comprehensive transaction cost analysis solution to a wider marketplace," stated Ray Killian, ITG's Chairman, President and Chief Executive Officer.
"The demand for transaction cost analysis services continues to grow, and we look forward to aligning with ITG to provide clients with the best product offering possible," stated Wayne Wagner, Chairman of Plexus Group.
The transaction is expected to close within 120 days, subject to customary closing conditions.
About Plexus Group Plexus Group, Inc., provides consulting services to help clients improve their trading efficiency. The firm measures and benchmarks trading costs for money managers, pension funds, and brokers. Plexus reviews "single event" trading, such as programs and transitions, as well as quarterly monitoring and ongoing trading process. The methodology benchmarks both trading costs (commission and impact) and the cost of filling positions (timing and opportunity costs).
About ITG Investment Technology Group, Inc. (ITG), is a specialized brokerage firm that partners with clients globally to provide innovative solutions spanning the entire trading process. A pioneer in electronic trading, ITG has a unique approach to trading that combines pre-trade analysis, trade execution, and post-trade evaluation to provide continuous improvements in trading and cost efficiency. The firm is headquartered in New York and maintains offices in North America, Europe and the Asia Pacific regions. For additional information, visit http://www.itginc.com/.
In addition to historical information, this press release may contain "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995, that reflect management's expectations for the future. A variety of important factors could cause results to differ materially from such statements. These factors include the company's ability to achieve expected future levels of sales; the actions of both current and potential new competitors; rapid changes in technology; financial market volatility; general economic conditions in the United States and elsewhere; evolving industry regulation; cash flows into or redemption from equity funds; effects of inflation; customer trading patterns; and new products and services. These and other risks are described in greater detail in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2004, and other documents filed with the Securities and Exchange Commission and available on the company's web site.
ITG Contacts: Maureen Murphy Alicia Curran
Investor Relations Media Relations
(212) 444-6323 (212) 444-6130
DATASOURCE: Investment Technology Group, Inc.
CONTACT: Maureen Murphy, Investor Relations, +1-212-444-6323, or Alicia Curran, Media Relations, +1-212-444-6130, both for Investment Technology Group, Inc.
Web site: http://www.itginc.com/
|