Investment Technology Group today agreed to acquire trade order management system vendor Macgregor Group for $230 million in cash, according to Ray Killian, ITG's chairman, president and CEO. The deal, which is expected to close in 60 to 90 days, combines Macgregor's order management system and ITG's trading execution platforms.
"There's virtually zero overlap between the two firms," Mr. Killian said in an interview. "Between the two, we've got a cradle-to-grave execution continuum."
Steven Levy, president and CEO of Macgregor, said the next phase of growth for his company would have been in the trade execution business, and the deal with ITG meets that goal immediately.
"There's been a tremendous drive toward increased efficiency of asset management, and for years people tried to solve that by throwing headcount at the problem," Mr. Levy said. He added that combining an order management system and a trade execution platform will lower operating costs for institutional investors and will "move faster and capture alpha" in the trading process.