Getco Holding Company LLC Wins Knight Capital Group Inc With $2 Billion Sweetened Offer-Reuters

Reuters reported that Getco Holding Company LLC will buy Knight Capital Group Inc for about $2 billion after sweetening its offer for the equities market-making firm to beat out rival Virtu Financial LLC. 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 deal seals a whirlwind five months for Knight after a near-fatal trading error on August 1. The Company, which executes about 10% 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.