KCG Holdings to acquire Neonet Securities

KCG Holdings Inc said July 27 that it agreed to buy Neonet Securities AB. Hay Tor Capital, KAS BANK and Cidron Delfi Intressenter Holding are the sellers. Financial terms weren’t disclosed. Stockholm-based Neonet is an agency broker and execution specialist. KCG was advised on the transaction by Advokatfirman Vinge KB and Sullivan & Cromwell LLP. NovitasFTCL acted as financial advisor while Advokatfirman Delphi the legal advisor to the shareholders of Neonet.

JERSEY CITY, N.J., July 27, 2016 /PRNewswire/ — KCG Holdings, Inc. (NYSE: KCG) (“KCG”) today announced that it has entered into a definitive agreement to acquire Neonet Securities AB (“Neonet”), an independent agency broker and execution specialist based in Stockholm, Sweden from its shareholders, Hay Tor Capital, KAS BANK and Cidron Delfi Intressenter Holding. Financial terms were not disclosed.
Founded in 1996, Neonet provides a comprehensive suite of advanced algorithmic trading, smart order routing and sales trading primarily in European equities across 30 public and private markets to approximately 200 clients in more than 20 countries. Neonet strives to deliver transparent execution services to banks, brokers and financial institutions with an optimized balance of quality and cost. The acquisition will strengthen KCG’s reach in continental Europe and will enable both KCG’s and Neonet’s clients to access a more complete range of international execution services and capabilities.
Philip Allison, Chief Executive Officer of KCG Europe Limited, said, “We are pleased to announce an agreement to acquire Neonet, a Nordic pioneer in trading and execution services, as we broaden our European reach and continue to bolster our ability to provide clients with global execution solutions. Neonet’s sophisticated technology, experienced trading desks, and deep team of execution specialists are highly complementary to our existing execution services and will help accelerate the growth of our agency client business.”
John Ashdown, Managing Partner at Hay Tor Capital, said, “We are delighted that such a major industry participant as KCG will now take the Neonet business forward to the next level at an immensely exciting time of industry transformation in Europe.”
Tim Wildenberg, Chief Executive Officer of Neonet, added, “We are excited to join forces with KCG, an established market leader in global execution services. For the last 20 years, Neonet has focused on putting clients first and providing them with transparent execution services, as well as deep knowledge of international financial markets. We look forward to leveraging KCG’s significant expertise across asset classes in the U.S. and Europe for the benefit of our clients worldwide for years to come.”
The transaction, which is subject to customary regulatory and other approvals, is expected to close later this year. Neonet will continue to be led by Mr. Wildenberg and will maintain the company’s headquarters in Stockholm following the close. The transaction is expected to result in cost savings through consolidating exchange memberships, market data, routing and other operational costs while simultaneously expanding KCG’s breadth and commitment to Europe. KCG expects the acquisition will be slightly accretive to earnings in 2017.
KCG was advised on the transaction by Advokatfirman Vinge KB and Sullivan & Cromwell LLP. NovitasFTCL and Advokatfirman Delphi served as financial and legal advisors, respectively, to the shareholders of Neonet.
About KCG
KCG is a leading independent securities firm offering investors a range of services designed to address trading needs across asset classes, product types and time zones. The firm combines advanced technology with specialized client service across market making, agency execution and venues and also engages in principal trading via exchange-based market making. KCG has multiple access points to trade global equities, fixed income, options, currencies and commodities via voice or automated execution. www.kcg.com
About Neonet
Neonet is an execution service provider that offers independent, flexible and transparent execution services, which significantly reduce the cost of trading for users. Neonet serves clients in over 20 countries, and all trades are executed on regulated markets. The company was earlier listed but is currently privately owned by a consortium of owners including Hay Tor Capital LLP, KAS Bank N.V., and Nordic Capital / Cidron Delphi Intressenter AB.
For more information visit www.neonet.com
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