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Monday, April 15, 2013

Knight, Getco expect $110 million in annual cost savings from merger, (NYSE: KCG)

High-speed trading firms Knight Capital Group and Getco Holding Co expect to achieve up to $110 million in annual cost savings within three years of closing their $1.4 billion merger, according to a regulatory filing released on Monday. The companies said they expect $20 million to $30 million in annual savings after the first year of operating as a single company. The savings are expected to come in part from reductions in infrastructure, personnel and professional fees, the filing said.The deal, which combines two of the largest U.S. automated trading firms, is expected to close in the first half of 2013.The companies also said they would issue two-thirds less common shares of the new company to Knight stock holders and Getco unit holders, while increasing the per-share value to $11.25 from $3.75.The companies said they adjusted the exchange ratio to ensure the trading price of the merged company's common stock closed above the New York Stock Exchange's minimum stock price listing requirement of $4 per share. The adjustment would not affect the amount paid either to Knight stockholders or Getco unitholders.

Knight Capital Group, Inc. is a United States-based company that provides financial services. Shares of KCG remained unchanged at $3.74. In the past year, the shares have traded as low as $2.24 and as high as $13.54. On average, 1537290 shares of KCG exchange hands on a given day and today's volume is recorded at 0.



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