The merger between trading firms Knight Capital Group and Getco Holding Co is expected to gain US$110 million in cost savings per year for the firms. The US$1.4 billion merger is expected to have between US$20 million and US$30 million per year for the next three years.
The figures were confirmed through documents filed with regulators Monday. The savings would be gained from reductions in infrastructure, professional fees and personnel charges. The merger between the two of the biggest automated trading firms in the United States and is expected to be completed in the first half of 2013.
The firms have adjusted the exchange ratio to ensure that the trade values of the merged entity's common stock would close above the New York Stock Exchanges's floor stock price listing requirement at US$4 per share. The agreed upon adjustment would not affect the amounts paid to either of the shareholders of the original companies.
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