24 July 2016
Find out more

ITG to buy Macgregor for $230m

13 July 2005  |  10630 views  |  0 Macgregor logo

New York-based Investment Technology Group (ITG) has entered into a definitive agreement to acquire Boston-based Macgregor, a privately-held provider of trade order management technology, in a cash deal worth $230 million.

ITG, a provider of technology-based equity trading services, says the transaction will be accretive in the first quarter of 2006.

Founded in 1991, Macgregor employs 190 staff at its Boston headquarters and offices in New York, London and Madrid. The company's client base consists of more than 100 buy-side institutions and 270+ sell-side customers.

Macgregor's co-founders Steven Levy and Rolando Rabines have been hawking the business to potential buyers for some time. Alongside ITG, SunGard Data Systems was also rumoured to be in hot pursuit.

Private equity firms Bain Capital, Commonwealth Capital and the Audax Group own 43% of Macgregor. Bear Stearns acted on behalf of Macgregor, while San Francisco boutique Financial Technology Partners advised ITG on the sale.

Commenting on the acquisition, Ray Killian, ITG's chairman, president, and CEO, says: "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."

He adds: "This acquisition provides us with a deeper product set, recurring revenue and continued overall diversification."

It's estimated that 85% of Macgregor's $50 million in annual revenues are "recurring" from software licenses, shared commissions, and connectivity fees. Last year the firm nearly doubled pretax profits to $16 million.

ITG says that by combining its own technology with Macgregor's, it will be able to provide clients with a best-execution order management system that will closely integrate real-time data, analytics, order management and execution tools. The combined system will also position ITG and Macgregor to develop multi-asset class products.

The acquisition additionally gives ITG it's first foot-in-the-door at roughly a third of Macgregor's US client base.

ITG insists customers will continue to have the choice of trading through any broker or venue.

The transaction is expected to close in 60 to 90 days and is subject to customary closing conditions.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Macgregor to launch portfolio compliance product

Macgregor to launch portfolio compliance product

17 June 2005  |  4358 views  |  0 comments
Mondrian signs for Macgregor XIP Post-Trade system

Mondrian signs for Macgregor XIP Post-Trade system

09 March 2005  |  4418 views  |  0 comments
ITG agrees $90 million downpayment on Morgan Stanley Posit stake

ITG agrees $90 million downpayment on Morgan Stanley Posit stake

16 December 2004  |  5103 views  |  0 comments
ITG Europe in talks to buy rival E-crossnet

ITG Europe in talks to buy rival E-crossnet

06 December 2004  |  3951 views  |  0 comments
Macgregor launches order management network

Macgregor launches order management network

29 October 2004  |  3065 views  |  0 comments
ITG acquires remaining 75% of Radical Corporation

ITG acquires remaining 75% of Radical Corporation

05 April 2004  |  4427 views  |  0 comments
ITGE deploys Mercator's global securities solution

ITGE deploys Mercator's global securities solution

28 August 2002  |  2982 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Find out moreVisit VocaLink.comVisit capgemini.com

Top topics

Most viewed Most shared
MasterCard agrees £700m VocaLink acquisitionMasterCard agrees £700m VocaLink acqu...
8261 views 14 comments | 32 tweets | 37 linkedin
hands typing furiouslyBanking on IoT: Security in the Internet o...
7941 views 3 | 19 tweets | 7 linkedin
hands typing furiouslyWhat Every FinTech CEO Should Know About R...
7924 views 0 | 14 tweets | 8 linkedin
satelliteContactless Bitcoin startup Plutus Tap &am...
7776 views comments | 6 tweets | 3 linkedin
Santander doubles down on fintech fundSantander doubles down on fintech fund
7636 views comments | 22 tweets | 28 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job