Investment Technology Group on Thursday said it agreed to sell its energy research unit to private equity firm Warburg Pincus for $120.5 million in a cash deal.
ITG, a brokerage and financial markets technology provider, will continue to provide research from the group to its institutional clients under terms of the deal.
The unit will operate under a new, as yet undetermined, name once the deal closes, expected to be by the end of the year.
The deal was announced the same day that ITG reported a decline in net income in the third quarter, in part because of costs associated with the firm’s $20.3 million settlement with the Securities and Exchange Commission, announced in August. The SEC charged that the dark-pool operator misused confidential trading information of its subscribers in a secret trading desk.
ITG on Thursday reported net income of $2.7 million in the quarter, compared to $11.4 million for the third quarter of 2014. Legal and other fees related to the settlement totaled $1.5 million after taxes.
Spokesmen at ITG and Warburg Pincus could not be immediately reached for further details.