Leucadia to Acquire ITG Investment Research in Analytics Bet

  • New unit will be known as M Science, led by Michael Marrale
  • ITG CEO Troise reviewing business to narrow company's focus

Leucadia National Corp., led by Chief Executive Officer Richard Handler, agreed to acquire ITG Investment Research to add offerings of data analytics to institutional, corporate, private equity and venture capital clients.

Michael Marrale will join Leucadia from the seller, Investment Technology Group Inc., and lead the operation, which will be renamed M Science, Handler’s New York-based company said Tuesday in a statement.

“We believe big data analytics and related research will be an increasingly valuable and important source of insight for investors and businesses, and are pleased to be acquiring one of the leading and longest-standing efforts in the field,” Handler and Leucadia President Brian Friedman said in the statement.

Leucadia, the parent of investment bank Jefferies Group, will add research in the consumer, telecom, media and technology industries, covering more than 200 companies, in the deal. Handler’s firm, which also has beef processing, mortgage and energy holdings, bailed out currency-trading business FXCM last year.

ITG CEO Frank Troise is reshaping the brokerage after rejoining this year from a stint at JPMorgan Chase & Co. He is working to help the company rebound from afine last year over abuses at its dark-pool trading venue.

The deal will help ITG focus on execution and liquidity, Troise said in a separate statement. The company reached an agreement late last year to sell RS Energy Group to an affiliate of Warburg Pincus.

‘Core Capabilities’

“We need to sharpen our focus – to concentrate our time and our resources on our core capabilities in execution, liquidity, analytics and workflow tools,” Troise wrote of the sale in an internal memo obtained by Bloomberg News.

Leucadia will buy the unit from ITG for $12 million in cash, the seller said. The deal is expected to close at the end of this month, according to ITG’s statement.

ITG rose 30 cents to $18.89 at 4:02 p.m. in New York trading, extending its gain for the year to 11 percent after an 18 percent slide in 2015. Leucadia climbed 99 cents, or 5.9 percent, to $17.71, the biggest increase since 2012.

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