Going forward, Majestic will be known as ITG Investment Research.

Majestic Research helps investors gain independent perspectives on companies and their sectors based on proprietary data sources and rigorous analysis. Majestic provides coverage of more than 200 companies in 17 industry verticals as well as macroeconomics and bespoke research reports for approximately 200 clients in the US and Europe. With the addition of Majestic to its platform, ITG offers even more compelling value across the investment continuum to portfolio managers, analysts and traders.

"This acquisition marries the market leader in global agency execution with an emerging force in the business of providing asset managers with investment ideas that generate excess returns," said Bob Gasser, CEO and President of ITG. "Like ITG itself, Majestic is independent, unbiased and focused on partnering with clients to improve investment performance. We look forward to introducing this compelling offering to our combined client base."

Tony Berkman, co-founder and CEO of Majestic Research, said, "Given ITG's focus on leveraging technology and data to drive products, it would be difficult to conceive of an execution platform more well-aligned with our unique research methodology. My colleagues and I are excited about joining ITG and partnering with a broader range of institutional investors."

The purchase price for Majestic was $56 million, consisting of $53 million in cash and $3 million in converted employee equity awards. ITG expects the acquisition to be accretive to earnings beginning in the first quarter of 2011. ITG management will discuss the transaction in more detail on the Third Quarter 2010 earnings call on October 28th.

Financial Technology Partners LP and FTP Securities LLC (together "FT Partners") served as exclusive strategic and financial advisor to Majestic Research and its Board of Directors in this transaction.

In reliance upon New Yorkon New York Stock Exchange Rule 303A.08, ITG granted inducement awards pursuant to which an aggregate of 735,253 time- and performance-vesting stock units (the "RSUs") will be awarded to 15 employees on October 25, 2010. Each of these employees was previously a Majestic Research employee who joined ITG as a result of the acquisition. Approximately half of the RSUs granted vest in quarterly installments on each of the first four anniversaries of the date of grant of the award. The remaining RSUs vest based upon the level of attainment of certain performance-based vesting conditions.