Virtu Financial Super deal and all cash too. Virtu Financial which operates a U.S. electronic trading business has agreed to acquire KCG Holdings for $1.4 BILLION......ALL CASH! Virtu brought in a couple of investors to help complete the financing including Canada's Public Sector Pension Investment Board (PSP Investments) and Singapore's GIC. Both company's boards have already approved the deal which will close in the 3rd quarter. Congrats.

(Bill Taylor, CEO)

Virtu Financial, Inc. Agrees to Acquire KCG Holdings, Inc. to Create a Premier Market Maker and Agency Execution Firm

Leverages Virtu’s global scale, efficiency and market structure expertise with KCG’s strong client franchises in market making and independent agency execution

Over 25% accretion to Virtu earnings per share with fully-phased cost savings and capital synergies

NEW YORK, April 20, 2017 (GLOBE NEWSWIRE) — Virtu Financial, Inc. (NASDAQ:VIRT) today announced that it has entered into a definitive agreement to acquire KCG Holdings, Inc. (NYSE:KCG), which has been unanimously approved by the Board of Directors of each company. Virtu has agreed to acquire KCG in a cash transaction valued at $20.00 per KCG share, or a total of approximately $1.4 billion.

The transaction will extend Virtu’s scaled operating model to KCG’s wholesale market making businesses and broaden the distribution of Virtu’s technology and execution services to KCG’s extensive institutional client base. Virtu expects to migrate trading of the combined company onto a single, proven technology, risk management, and analytics platform.

“KCG fits perfectly with Virtu’s strategic priorities to apply our market making and technological expertise to customer wholesale order flow and expand Virtu’s growing agency execution business by offering clients a combination of Virtu and KCG’s superior algorithms and proprietary analytical tools. In addition, there is immediate opportunity for revenue growth and significant cost savings,” said Douglas A. Cifu, Virtu’s Chief Executive Officer.

Mr. Cifu continued, “Virtu and KCG both have a heritage of using technology to make markets more efficient. The combination of talented, dedicated professionals from KCG and Virtu will allow us to achieve more together than either firm could achieve alone.”

The transaction is expected to close during the 3rd quarter in 2017 after receipt of KCG shareholder approval and all required regulatory approvals.

Significant Value Creation through Synergies

The transaction is expected to provide significant further scale and financial benefits to Virtu. Within two years of the completion of the transaction, Virtu expects to realize approximately $208 million of net pre-tax expense savings, in addition to $440 million of capital synergies. These savings do not include any revenue enhancements that Virtu anticipates to result from the transaction.

Transaction Terms, Approvals and Timing

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