April 20, 2017 / 12:11 PM / 4 months ago

BRIEF-Virtu Financial to buy KCG Holdings for about $1.4 bln

April 20 (Reuters) - Virtu Financial Inc

* Virtu financial, inc. Agrees to acquire kcg holdings, inc

* Virtu financial -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

* Virtu financial - transaction expected to close during q3 in 2017 after receipt of kcg shareholder approval and all required regulatory approvals

* Virtu financial inc - within two years of completion of deal , virtu expects to realize about $208 million of net pre-tax expense savings

* Deal has been unanimously approved by the board of directors of each company

* Virtu financial - virtu intends to maintain its annual dividend of $0.96 per share after the close of the transaction

* Virtu financial - following the close of the transaction, douglas a. Cifu, virtu ceo, will remain ceo of the combined company

* Virtu financial inc says intends to fund cash transaction & debt refinancing with new gross borrowings of $1.65 billion and sale of $750 million of stock

* $750 million will be financed through the issuance of common stock at $15.60 per share

* Virtu financial inc - joseph a. Molluso, virtu cfo, will remain the cfo of the combined company

* Virtu financial inc - within two years of completion of deal , virtu expects to realize $440 million of capital synergies

* Virtu financial - also entered into a commitment with j.p. Morgan securities llc, to provide up to $1.65 billion of debt financing for the transaction

* Virtu financial - following deal close, combined co board will consist of 10 directors, including 8 of 10 members currently serving on virtu board

* Virtu financial inc - 2 new members from north island, robert greifeld and glenn hutchins, will join virtu’s board of directors

* Virtu financial inc - sees q1 gaap net income $21.3 million

* Virtu financial sees q1 total revenues $147.3 million

* Virtu financial inc - sees q1 adjusted net trading income $79.4 million

* Virtu financial inc - over 25% accretion to virtu earnings per share with fully-phased cost savings and capital synergies following deal

* Virtu financial - north island will invest $625 million in virtu common stock, in partnership with gic and public sector pension investment board

* Virtu financial - temasek has committed to invest an additional $125 million in virtu common stock Source text for Eikon: Further company coverage:

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