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ITG Completes Hoenig Acquisition

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NEW YORK (–Investment Technology Group Inc.’s acquisition of Hoenig Group Inc. finally is a done deal.

ITG announced the merger in late February (Previous HedgeWorld Story) and amended its deal with Hoenig on July 2. The purchase proves to be advantageous for ITG, which is looking to expand its hedge fund client base.

Hoenig is a provider of trade execution and research services to alternative investment funds, while ITG is known for its electronic trading system POSIT. Under the agreement, ITG bought Hoenig for US$105 million with Hoenig shareholders receiving US$11.35 per share and a contingent payment right entitling them to a pro rata share of the amount, if any, recovered on insurance and other claims related to the previously announced trading loss and unauthorized trading activity at Hoenig’s U.K. subsidiary. A total of US$2.4 million has been set aside to handle claims.

Robert J. Russel, ITG’s chief executive said in a statement, “This acquisition accelerates our growth strategy in the hedge fund market with an established and expanding high-quality client base.”

Hoenig will be a wholly owned subsidiary of ITG. The U.S. operations of the company will report to newly named Chief Executive Officer Steve Sorice. He’s been with ITG since 1994 and has been a managing director and co-head of sales and trading since 1999.

The London operation of Hoenig will be integrated into ITG’s European business overseen by Alasdair Haynes, ITG Europe’s chief executive. Hoenig’s Hong Kong subsidiary will become of ITG’s Asian operations, under the supervision of Greg Robinson, ITG Australia’s chief executive.


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