KCG Holdings, Inc. (NYSE: KCG) has completed the acquisition of Neonet Securities, Swedish independent agency broker and execution specialist, following its earlier bid to acquire the group back in July 2016, according to a KCG statement.
Neonet is a provider of advanced algorithmic trading, smart order routing, and sales trading primarily across the European equities space. The impetus behind the acquisition by KCG has been to help enable clients from the group as well as Neonet support greater access to a more complete composite of international execution services and capabilities. In particular, this will emphasize KCG’s latitude on the European continent, with a focus on equities and execution services to banks, brokers, and other financial institutions.
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No Management Shakeup
Following the acquisition, the Neonet business will operate as a subsidiary of KCG and be rebranded as KCG Neonet – additionally, the unit will continue to be based in Stockholm and led by Chief Executive Officer (CEO) Tim Wildenberg. KCG had stipulated back in July that no management shakeup would take place, with Wildenberg retaining his role.
The latest update follows on the heels of regulatory and Neonet’s shareholder approval. Moving forward, KCG Neonet will aim to provide clients with an expanded set of global execution services and capabilities, whilst KCG’s expanded foothold in continental Europe.
According to Philip Allison, CEO of KCG Europe Limited, in a recent statement on the closure of the deal: “Neonet’s talented team of specialists and commitment to client service make them an ideal strategic partner for KCG as we expand our European presence and offerings. Neonet is at a terrific place in its trajectory, and we look forward to capitalizing on exciting opportunities as a combined business.”
“This is an exciting new chapter for Neonet’s business and one that will meaningfully and quickly benefit every one of our clients. By putting Neonet and KCG together, we will be able to offer a broader set of global offerings and execution solutions, backed by a deeper range of expertise and skillsets from both firms,” reiterated Mr. Wildenberg in an accompanying statement.