ITG Acquires Ross Smith Energy Group for $38.5M

Investment Technology Group, Inc. ITG today announced that it has acquired Ross Smith Energy Group Ltd. a Calgary-based independent provider of research on the oil and gas industry. Going forward, RSEG will be rebranded as ITG Investment Research and the research offering will be an integrated part of the ITG platform. The purchase price for RSEG was US$38.5 million in cash. The transaction is not expected to add materially to earnings in 2011 due to one-time acquisition and integration charges, however, ITG estimates the transaction will add $0.08 to $0.10 per diluted share of earnings in 2012. In addition, the structure of the transaction is expected to result in a 15-year tax benefit to ITG's cash flow with an estimated present value of US$7 million.