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ITG Acquires Majestic Research

ITG looks to Majestic's independent analysis of companies to provide asset managers with investment ideas that generate excess returns.

Investment Technology Group (ITG) has acquired Majestic Research Corp., an independent provider of data-driven equity research for the institutional investment community. ITG acquired Majestic for $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. Based on its proprietary data and rigorous analysis of companies and their sectors, 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, the agency broker and technology provider said in the release. “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,” commented Bob Gasser, CEO and President of ITG, in the release. “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.”

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

Tony Berkman, co-founder and CEO of Majestic Research, stated, “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.”

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.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

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