Investment Technology Group (ITG), the owner of the POSIT equity trade matching engine and other electronic and algorithmic trading venues, has acquired Macgregor, one of the biggest names in order management applications. The all-cash acquisition is valued at approximately $230 million.
The aim is to combine ITG execution technologies with the Macgregor order management applications to provide users with a best-execution order management service that incorporates real-time data, analytics, order management and execution tools for institutional trading desks.
“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,” explains Ray Killian, ITG’s Chairman, President, and Chief Executive Officer. “We recognized the strength of Macgregor’s flexible, end-to-end networked platform and are excited about what this partnership will bring to ITG’s clients, shareholders and employees. This acquisition provides us with a deeper product set, recurring revenue and continued overall diversification.”
ITG argues that the combination will enable the company to develop multi-asset class products, grow internationally, and attract new customers, including hedge funds.
Macgregor’s clients include around a hundred fund managers with approximately $5.5 trillion in assets under management. ITG and Macgregor have an existing relationship. Channel ITG, ITG’s algorithmic servers, and ITG’s Transaction Cost Analysis are already integrated into Macgregor’s order management system. ITG says the transaction does not affect its policy of broker neutrality. Customers will continue to have the choice of trading through any broker or venue.
The transaction will be financed with cash and bank debt. The transaction is expected to close in 60 to 90 days and is subject to customary closing conditions.
“We are honored to be part of ITG’s already world-class solution,” says Steven Levy, President and CEO of Macgregor. “Macgregor and ITG customers will all benefit significantly from the extensive integration and increased functionality of ITG’s advanced trading products and analytic tools. I look forward to working closely with Ray and his team with whom we have partnered successfully for many years.”
Macgregor was founded in 1991. Its Macgregor XIP Order Management Network combines portfolio management, compliance, trading and post-trade applications with an IP network. It aims to enables buy-side firms to execute trades quickly, accurately and efficiently.