ITG Europe, which operates POSIT® -- the intraday equities crossing system -- and offers a range of transaction analysis tools such as TCA® and ITG ACE® said this will be a strategic acquisition aimed at strengthening POSIT's position as the pre-eminent equities crossing platform in Europe and believes this transaction will act as a catalyst to increase its growth momentum. ITG Europe added that it expects to make some economies of scale and that EXN clients would gain access to more trading and analytical products. It is anticipated that a definitive purchase agreement will be executed by the year-end, subject to completion of due diligence.
Alasdair Haynes, CEO of ITG Europe, said: "ITG Europe pioneered the intraday equities crossing business in Europe and we have made it a success in the last six years. Crossing is now an integral part of the trading landscape and forms a key component of the Best Execution process. In seeking to add EXN to POSIT we will be able to give all clients a single and enhanced liquidity pool and access to ITG Europe's professional trading desk and other tools and services."
Raymond Killian, President and CEO of ITG, added: "A deal with EXN will give ITG Europe access to new client relationships. We believe this transaction will be beneficial to all our clients and is a very exciting development for the European marketplace."
All EXN's 13 shareholders would be selling their stakes. Commenting on the proposed deal, the three major shareholders -- Barclays Global Investors (BGI), Merrill Lynch Investment Managers (MLIM) and State Street -- said:
"Combining the liquidity pool of EXN with the global leader ITG will provide a highly attractive crossing venue for all professional investors." Lindsay Tomlinson, Vice-Chairman, BGI
"We fully support the creation of a single crossing network. By increasing liquidity, more trades will be matched and investors will see the benefit in lower transaction costs." Peter Gibbs, CIO MLIM EMEA Pacific
"We're a firm believer in the power of crossing networks for institutional investors to reduce trading costs and ensure best execution through transparency and efficiency. This deal will enhance liquidity and so enable more access to this network and that can only be a good thing." Alan Brown, Group CIO and Co-head State Street Global Advisors
