Cowen To Acquire Provider of Trading Algorithms

Cowen Group said it agreed to acquire Algorithmic Trading Management, a provider of customized code for executing trades electronically.

Terms were not announced.

Financial terms of the transaction were not disclosed.

Algorithmic Trading Management will continue to operate as a separate financial technology business.

Douglas Rivelli, Co-Head of Quantitative Trading Solutions at Cowen, will serve as Chief Executive Officer of Algorithmic Trading Management.

The transaction is expected to close before the end of June.

Algorithmic Trading Management supplies customized algorithms to both buy side and sell side traders. The company “shapes” them to “accommodate a nearly limitless number of objectives” and strategies ranging from single stock to pairs to portfolios. This agility provides our clients with the highest-quality execution, unmatched

The company was one of the first i first providers of algorithms for “directional” high-frequency baskets of orders.

Cowen Group provides alternative investment management, investment banking, research, market-making and sales and trading services through its two main businesses: alternative investment management and brokerage.

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The brokerage business accounted for $78.7 million of its $185.8 million in revenue in the first nine months of 2011. Investment banking accounted for $39.8 million.

The Algorithmic Trading Managemtn deal comes exactly one year after Cown announced plans to acquire LaBranche & Co Inc., a market-maker in options, exchange- traded funds and futures on domestic and foreign exchanges .

Cowen paid about $192.8 million for LaBranche.

Tom Steinert-Threlkeld writes for Securities Technology Monitor.