New York-based independent broker and financial technology provider ITG has closed a deal to sell its Calgary-based energy sector research unit to private equity firm Warburg Pincus.
Under the terms of the deal, which was announced last month, Warburg Pincus acquired the energy research group for US$120.5 million in cash. Effective immediately, the firm will operate under the new name RS Energy Group.
ITG expects to realize a gain of more than US$90 million after taxes from this transaction, the company says in a statement. ITG is currently evaluating alternatives for the use of proceeds from the transaction, the statement adds, including strategic initiatives and share repurchases.
ITG will continue to provide the energy research to its institutional clients. “We look forward to working with RS Energy Group in this next chapter, as both organizations share a commitment to the highest standards of client service and research quality,” says Michael Marrale, head of research, sales & trading at ITG, in a statement.