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

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.

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