ITG is to cut headcount in its high-touch trading business as part of the sale of its research division.
The agency broker has agreed to sell ITG Investment Research to Leucadia National Corporation for $12 million cash.
It said as a result of the sale it plans to take a restructuring charge of $1.6 million to reduce headcount in its US high-touch sales trading operation, which will generate cost savings of approximately $3 million annually.
Frank Troise, CEO and president of ITG, said: “The sale of our remaining research operations and the associated cost reduction measures we took today provide clarity to our clients, our shareholders and our employees that our strategic focus and resource allocation will be applied to our core capabilities in execution, liquidity, platforms and analytics. We thank our colleagues for their dedication and contributions to our firm.”
ITG Investment Research provides data driven research in a number of sectors, including technology, media and telecoms, covering more than 200 companies.
Last year, the firm sold off its energy research business, RS Energy Group, to an affiliate of Warburg Pincus. It said will continue to provide institutions with energy research under a prior agreement reached when that business was sold.
The deal is expected to close by the end of May 2016, and ITG said it will release further details, including revenue forecasts, following the completion of the sale.