InvestmentTechnology Group Inc. agreed to sell ITG Investment Research toLeucadia National Corp.for $12 million in cash.
ITG Investment Research is a provider of research in theconsumer, telecom, media, technology and macro sectors, covering more than 200companies. Upon close of the transaction, ITG Investment Research will operateas M Science.
The transaction is expected to close at the end of May. ITGexpects to generate a net increase in cash of more than $5 million, but it willnot book a material gain or loss from the transaction after related costs andtaxes and the write-down of the remaining intangibles associated with ITGInvestment Research.
ITG will continue to deliver energy research toinstitutional investors under its prior agreement following the of RS Energy Group to anaffiliate of Warburg PincusLLC in December 2015.
Additionally, ITG will cut jobs within its U.S. high-touchsales trading operation due to the sale of ITG Investment Research. The companywill take a restructuring charge of approximately $1.6 million. Those actionswill result in annual cost savings of about $3 million, the company said.