KCG Holdings, Inc. (NYSE: KCG), a global financial services firm engaging in market making and high-frequency trading, today announced that its board of directors has received an unsolicited proposal from rival Virtu Financial to acquire all of its outstanding shares. Shares of KCG rose more than 20 percent on the news while Virtu shares declined nearly one percent after hours.
The merger agreement provides for an undisclosed ‘go-shop’ period, during which KCG’s board of directors, together with its financial advisors, will be reviewing the proposal. The board may also solicit alternative proposals from third parties to acquire the company.
KCG offers trading services across several asset classes, product types and time zones. For every order, the company provides a solution, whether market making or agency, lit or dark, voice or automated.
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During February 2017, KCG reported an average daily US equities market making figure of $28.0 billion traded, which was virtually unchanged on a month-over-month basis from $28.1 billion in January 2017. This trend was on par with the majority of institutional and retail exchanges during the month, which was absent of any specific unified trend.
The Virtu Financial offer to acquire the shares of KCG’s common stock for $18.50-$20.00 per share in cash also is conditional upon its completion of due diligence, obtaining financing and other matters.