Cowen Group, Inc. Agrees to Acquire Algorithmic Trading Management

Transaction Will Expand Cowen’s Electronic Trading Platform By Adding Algorithmic Execution Capabilities

NEW YORK--()--Cowen Group, Inc. (“Cowen” or the “Company”) (NASDAQ: COWN) today announced its entry into a definitive agreement to acquire Algorithmic Trading Management, LLC (“ATM”), a provider of global, multi-asset class algorithmic execution trading models.

Following the closing of the transaction, ATM will continue to operate as a separate financial technology business offering broker neutral services to existing and future clients. Douglas Rivelli, Co-Head of Quantitative Trading Solutions at Cowen, will serve as Chief Executive Officer of ATM and will be responsible for overseeing the ATM business.

“The ATM team has developed first-rate execution technology that will greatly enhance the algorithmic trading capability in our broker-dealer business,” said Peter Cohen, Chairman and Chief Executive Officer of Cowen. “ATM has been an innovator and leader in the electronic trading space since the company’s founding in 2003 due to their rigorous quantitative research and exceptional understanding of capital markets.”

“The addition of ATM’s platform to Cowen’s strong existing trading business will give Cowen’s institutional clients access to the high performance electronic execution products they demand, while providing ATM clients with Cowen’s world class equity research product and distribution network,” commented Jeff Solomon, Chief Executive Officer of Cowen and Company, Cowen’s broker-dealer business. “This strategic decision is strongly aligned with our efforts over the past year to enhance our sales & trading footprint, invest in growth-oriented products and build out capabilities that add value for our clients. We are pleased to have Doug lead this effort for us at Cowen given his previous success as co-CEO of Pragma Securities.”

The transaction, which is subject to certain regulatory approvals and customary closing conditions, is expected to close by the end of the first quarter or early second quarter of 2012. Financial terms of the transaction were not disclosed.

About Algorithmic Trading Management, LLC

Founded in 2003, Algorithmic Trading Management (ATM) was one of the industry’s first providers of solutions to reduce the transactional costs of directional, high-frequency baskets. Since that time the company has remained at the forefront of innovation—with a suite of focused, flexible tools employed by a diverse range of global financial firms. The company is a world-leading provider of customized trading algorithms that enable both buy and sell side traders to achieve maximum value at minimum cost. Unlike rigid “out-of the-box” products, ATM’s sophisticated trading solutions can be shaped to accommodate a nearly limitless number of objectives and strategies. This agility provides clients with the highest-quality execution, unmatched reaction to evolving market dynamics, and a truly differentiating competitive advantage.

About Cowen Group, Inc.

Cowen Group, Inc. is a diversified financial services firm and, together with its consolidated subsidiaries, provides alternative investment management, investment banking, research, and sales and trading services through its two business segments: Ramius and its affiliates make up the Company’s alternative investment management segment, while Cowen and Company is its broker-dealer segment. Its alternative investment management products, solutions and services include hedge funds, replication products, managed futures funds, fund of funds, real estate, health care royalty funds and cash management services. Cowen and Company offers industry focused investment banking for growth-oriented companies, domain knowledge-driven research and a sales and trading platform for institutional investors. Founded in 1918, the firm is headquartered in New York and has offices located in major financial centers around the world.

Contacts

Sard Verbinnen & Co.
Dan Gagnier or Carissa Ramirez, 212-687-8080

Release Summary

Cowen Group, Inc. Agrees to Acquire Algorithmic Trading Management

Contacts

Sard Verbinnen & Co.
Dan Gagnier or Carissa Ramirez, 212-687-8080