Getco Holding Company LLC will purchase Knight Capital Group for about $2 billion after sweetening its offer for the equities market-making firm to beat out rival Virtu Financial LLC, people close to the deal said.Getco clinched the deal after it increased the amount of cash in its cash-and-stock offer that will essentially see it merge into Knight to create a new publicly traded company, the sources said.The deal seals a whirlwind five months for Knight after a near-fatal trading error on Aug. 1. The company, which executes about 10 percent of U.S. equity trading volume, making it a vital cog in the stock trading system, had to be rescued by a $400 million injection from a group of investors led by Jefferies Group Inc and including Chicago-based Getco.The deal is two-thirds cash and values Knight at $3.75 a share, the sources said.
Jefferies Group, Inc. is a United States-based firm that operates as a securities and investment banking firm. Shares of JEF traded higher by 3.07% or $0.56/share to $18.80. In the past year, the shares have traded as low as $11.59 and as high as $19.82. On average, 2903540 shares of JEF exchange hands on a given day and today's volume is recorded at 2982853.
Knight Capital Group, Inc. is a United States-based company that provides financial services. Shares of KCG traded higher by 2.15% or $0.07/share to $3.33. In the past year, the shares have traded as low as $2.24 and as high as $13.59. On average, 3853200 shares of KCG exchange hands on a given day and today's volume is recorded at 8272826.
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