NEW YORK, Dec. 22, 2015 (GLOBE NEWSWIRE) -- ITG (NYSE:ITG), a leading independent broker and financial technology provider, today announced that it has closed its transaction to sell the Calgary-based unit of ITG Investment Research (the “energy research group”) to Warburg Pincus, a global private equity firm focused on growth investing.
With the closing of this transaction, effective immediately the energy research group will operate under the new name RS Energy Group (“RSEG”).
ITG will continue to provide the energy research to its institutional clients, serving as the exclusive sales partner for institutional investors.
Michael Marrale, Head of Research, Sales & Trading at ITG, commented, “We look forward to working with RS Energy Group in this next chapter, as both organizations share a commitment to the highest standards of client service and research quality.”
As previously announced on November 5, 2015, under the terms of the agreement, Warburg Pincus acquired the energy research group for $120.5 million in cash. ITG expects to realize a gain of more than $90 million after taxes from this transaction. ITG is currently evaluating alternatives for the use of proceeds from this transaction, including strategic initiatives and share repurchases.
Jarrett Lilien, ITG Interim CEO, commented, “We are ending the year on a high note and look forward to a fresh perspective and a clean start in 2016.”
About ITG
ITG is an independent broker and financial technology provider that partners with global portfolio managers and traders to provide unique data-driven insights throughout the investment process. From investment decision through settlement, ITG helps clients understand market trends, improve performance, mitigate risk and navigate increasingly complex markets. ITG is headquartered in New York with offices in North America, Europe, and Asia Pacific. For more information, please visit www.itg.com.
About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $40 billion in assets under management. The firm’s active portfolio of more than 120 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 14 private equity funds, which have invested more than $50 billion in over 720 companies in more than 35 countries. Investments in information services companies have included CAMP Systems, The Gordian Group, Interactive Data Corporation, iParadigms and Payscale. The firm is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo and Shanghai. For more information please visit www.warburgpincus.com.
In addition to historical information, this press release may contain "forward-looking" statements that reflect management’s expectations for the future. A variety of important factors could cause results to differ materially from such statements. Certain of these factors are noted throughout ITG’s 2014 Annual Report on Form 10-K, and its Form 10-Qs (as amended, if applicable) and include, but are not limited to, general economic, business, credit and financial market conditions, both internationally and nationally, financial market volatility, fluctuations in market trading volumes, effects of inflation, adverse changes or volatility in interest rates, fluctuations in foreign exchange rates, evolving industry regulations and increased regulatory scrutiny, customers’ reactions to the settlement in August 2015 with the Securities and Exchange Commission, the outcome of contingencies such as legal proceedings or governmental or regulatory investigations, the volatility of our stock price, changes in tax policy or accounting rules, the actions of both current and potential new competitors, changes in commission pricing, rapid changes in technology, errors or malfunctions in our systems or technology, cash flows into or redemptions from equity mutual funds, ability to meet liquidity requirements related to the clearing of our customers’ trades, customer trading patterns, the success of our products and service offerings, our ability to continue to innovate and meet the demands of our customers for new or enhanced products, our ability to successfully integrate acquired companies and our ability to attract and retain talented employees. The forward-looking statements included herein represent ITG’s views as of the date of this release. ITG undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law.