ITG on the hunt, sees MiFID opportunity

NEW YORK (Reuters) - Investment Technology Group (ITG.N: Quote, Profile, Research), a provider of equity trading services to large institutional investors, is looking closely at acquisitions as the credit crisis causes competitors to be less interested in buying, the company's chief executive said on Wednesday.

ITG CEO Robert Gasser said a lot of potential buyers in the industry have been "wounded" by market turmoil, presenting ITG with an opportunity to take a harder look at acquisitions.

Gasser was speaking at the Reuters Exchanges and Trading Summit here.

Tighter credit has made it difficult for some companies to get financing for growth.

ITG is looking at acquisitions in every part of its business. One area that offers good growth opportunities now is continental Europe, where markets are opening for competition.

ITG has made a series of acquisitions in recent years to beef up its technology and product lines. Last year, it bought RedSky Financial, a broker-dealer specializing in electronic trading, and in 2005, it bought trade order manager Macgregor for $230 million.

ITG's acquisitions have ranged from about $10 million through about $230 million, which is the approximate range it would consider now for deals.

ITG, a pioneer of alternative venues for stock trading, has relatively low debt compared to its assets, which could make financing acquisitions easier. The company had about $3.1 billion of assets as of March 31, and $123 million of debt.

"Even in a market like this one, we have the capacity to do something significant if we wanted to," Gasser said.  Continued...