ITG To Be Acquired By Virtu Financial; Q3 Results Beat View - Quick Facts

(RTTNews) - Investment Technology Group Inc. (ITG), an agency broker and financial technology provider, said that Virtu Financial, Inc. (VIRT) has agreed to acquire all outstanding shares of ITG's common stock for $30.30 per share in cash. ITG also reported third-quarter financial results that beat analysts' estimates.

The acquisition price represents a premium of more than 40 percent over ITG's average closing share price of $21.55 in the 30 days prior to news reports of a potential sale on October 4, 2018.

J.P. Morgan is serving as the financial advisor and Wachtell, Lipton, Rosen & Katz is providing legal counsel to ITG.

ITG reported third-quarter net income of $0.2 million or $0.01 per share, compared to net loss of $47.0 million or $1.42 per share in the year-ago period.

The year-ago quarter's results included a non-cash charge of $42.3 million, or $1.28 per share, to establish a full valuation allowance for U.S. deferred tax assets, as well as a charge of $1.1 million, or $0.03 per share related to the establishment of the Matrix derivatives venture.

Adjusted net income for the quarter was $5.4 million or $0.16 per share, compared to adjusted net loss of $3.6 million or $0.11 per share last year.

Revenues for the quarter grew to $120.8 million from $114.5 million in the third quarter of 2017.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.14 per share for the quarter on revenues of $120.15 million. Analysts' estimates typically exclude special items.