NEW YORK (HedgeWorld.com)–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.