Investment Technology Group, Inc. (NYSE: ITG), a leading provider of technology-based equity trading services and transaction research, today announced the completion of the acquisitions of Macgregor, a trade order management technology provider and the Plexus Group, a transaction cost analysis provider.
The two acquisitions will be combined with ITG's existing Analytical Products and Research group under a new subsidiary, ITG Solutions Network, Inc., that will operate independently as a broker-neutral division of Investment Technology Group, Inc. Investment Technology Group, Inc. financed the acquisitions with $200 million in bank debt.
The Macgregor acquisition, valued at approximately $230 million, was announced on July 13, 2005; and the Plexus Group acquisition, valued at $12 million, was announced on September 19, 2005. Ian Domowitz, Managing Director at Investment Technology Group, has been appointed Chief Executive Officer of ITG Solutions Network. Mr. Domowitz previously headed ITG's Analytical Products and Research group.
"The Macgregor and Plexus transactions represent the next evolution of ITG's strategy of providing unique products that span the trading continuum. The unparalleled best execution order management solution formed by the integration of Macgregor's order management network with ITG's execution management systems and analytical tools and Plexus' transaction cost analysis services answers the demands of our customers for a truly end-to-end solution," said Ray Killian, Investment Technology Group's President and CEO.
"By tightly integrating order management technology with transaction cost analysis and pre-trade analytics in a broker-neutral environment, we can help buy side firms optimize their investment process," said Mr. Domowitz, CEO of ITG Solutions Network. "The creation of ITG Solutions Network enables ITG to provide a comprehensive product solution that maintains the neutrality that our customers have come to expect."
Financial Technology Partners LLC, and FTP Securities, LLC served as exclusive strategic advisors to ITG during this transaction.