Trading firm Virtu Financial to buy KCG for about $1.4 billion

High-speed electronic trading firm Virtu Financial said it would buy rival KCG Holdings in a $1.4 billion deal, helping Virtu bolster its businesses that have softened under reduced market volatility.

Virtu's offer of $20 per share represents a 12.7 percent premium to KCG's Wednesday close.

Shares of New York-based Virtu were up about 5 percent in premarket trading on Thursday, while that of KCG were up 10.2 percent.

Virtu said it expects to migrate trading of the combined company onto a single platform.

The market maker said it expects the deal to add over 25 percent to its earnings per share.

Link: Trading firm Virtu Financial to buy KCG for about $1.4 billion
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