Getco Merging With Knight Capital for $1.4 Billion

Electronic trading firm Getco Holdings announced in a press release Wednesday that it will acquire Knight Capital Group (NYSE: KCG  ) for $1.4 billion. The two companies will be combined under a new holding company to be publicly traded at the completion of the merger.

The deal offers Knight shareholders $3.75 per share, a premium of more than 13% over its Tuesday closing price. It's a victory for Knight after its software trading glitch in August led to a trading loss of more than $400 million and nearly resulted in bankruptcy for the company. Getco was one of a group of investors that bailed out Knight during the fiasco.

Knight Chairman and CEO Thomas M. Joyce summarized   the rationale for the deal in Getco's release, saying, "The transaction provides near-term certainty in the form of cash, while also allowing shareholders to benefit from participation in the future success of the firm."

Shares of Knight surged on the day, picking up 6% in afternoon trading to eclipse the $3.50 per-share mark.


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2162699, ~/Articles/ArticleHandler.aspx, 12/21/2014 5:52:51 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement