Virtu Financial to buy ITG for $30.30 per share

|By:, SA News Editor

Virtu Financial (NASDAQ:VIRT) agrees to acquire Investment Technology Group (NYSE:ITG) for $30.30 per share in cash, to bolster its offerings for institutional clients.

Virtu +6.5% in premarket trading.

The per-share price represents a 37% premium to ITG's closing price of $22.06 on Oct. 3, before a report that Virtu was looking to buy ITG.

The deal will reduce quarter-to-quarter earnings volatility as revenue contribution from Technology and Execution Services will increase to 37% from 10%, Virtu says.

Virtu intends to fund the all-cash transaction with new gross borrowings of $1.5B; intends to repay $400M outstanding under its existing term loan.

VIRT gets committed financing from Jefferies and Royal Bank of Canada for up to $1.5B of debt financing for the deal.

Intends to maintain annual dividend of 96 cents per share after the transaction closes.

Sees $123M of net pretax expense savings and $125M of capital synergies.

Conference call at 7:30AM ET

Previously: Virtu Financial EPS in-line, beats on revenue (Nov. 7)

Previously: Virtu Financial is potentially looking to acquire Investment Technology Group:Bloomberg (Oct. 4)

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