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
Certain statements contained herein and the documents
incorporated by reference containing the words "believes,"
"intends," "expects," "anticipates," and words of similar meaning,
may constitute forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. These "forward-looking
statements" are not historical facts and are based on current
expectations, estimates and projections about KCG's industry,
management's beliefs and certain assumptions made by management,
many of which, by their nature, are inherently uncertain and beyond
our control. Any forward-looking statement contained herein speaks
only as of the date on which it is made. Accordingly, readers are
cautioned that any such forward-looking statements are not
guarantees of future performance and are subject to certain risks,
uncertainties and assumptions that are difficult to predict
including, without limitation, risks associated with: (i) the
inability to manage trading strategy performance and sustain
revenue and earnings growth; (ii) the receipt of additional
payments from the sale of KCG Hotspot that are subject to certain
contingencies; (iii) changes in market structure, legislative,
regulatory or financial reporting rules, including the increased
focus by Congress, federal and state regulators, the SROs and the
media on market structure issues, and in particular, the scrutiny
of high frequency trading, alternative trading systems, market
fragmentation, colocation, access to market data feeds, and
remuneration arrangements such as payment for order flow and
exchange fee structures; (iv) past or future changes to KCG's
organizational structure and management; (v) KCG's ability to
develop competitive new products and services in a timely manner
and the acceptance of such products and services by KCG's customers
and potential customers; (vi) KCG's ability to keep up with
technological changes; (vii) KCG's ability to effectively identify
and manage market risk, operational and technology risk,
cybersecurity risk, legal risk, liquidity risk, reputational risk,
counterparty and credit risk, international risk, regulatory risk,
and compliance risk; (viii) the cost and other effects of material
contingencies, including litigation contingencies, and any adverse
judicial, administrative or arbitral rulings or proceedings; (ix)
the effects of increased competition and KCG's ability to maintain
and expand market share; (x) the announced plan to relocate KCG's
global headquarters from Jersey City,
NJ to New York, NY; and
(xi) KCG's ability to complete the sale or disposition of any or
all of the assets or businesses that are classified as held for
sale. The list above is not exhaustive. Because forward looking
statements involve risks and uncertainties, the actual results and
performance of KCG may materially differ from the results expressed
or implied by such statements. Given these uncertainties, readers
are cautioned not to place undue reliance on such forward-looking
statements. Unless otherwise required by law, KCG also disclaims
any obligation to update its view of any such risks or
uncertainties or to announce publicly the result of any revisions
to the forward-looking statements made herein. Readers should
carefully review the risks and uncertainties disclosed in KCG's
reports with the U.S. Securities and Exchange Commission ("SEC"),
including those detailed in "Risk Factors" in Part I, Item 1A of
KCG's Annual Report on Form10-K for the year ended December 31, 2015, "Legal Proceedings" in Part I,
Item 3, under "Certain Factors Affecting Results of Operations" in
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in Part II, Item 7, in "Quantitative and
Qualitative Disclosures About Market Risk" in Part II, Item 7A, and
in other reports or documents KCG files with, or furnishes to, the
SEC from time to time. This information should be read in
conjunction with KCG's Consolidated Financial Statements and the
Notes thereto contained in its Annual Report on Form 10-K,
Quarterly Report on Form 10-Q for the quarter-ended March 31, 2016, and in other reports or documents
KCG files with, or furnishes to, the SEC from time to time.
CONTACTS
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Sophie Sohn
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Jonathan Mairs
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Communications &
Marketing
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Investor Relations
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312-931-2299
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201-356-1529
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media@kcg.com
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jmairs@kcg.com
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Neonet Media: Melanie Budden
The Realization Group
+44 (0) 7974 937970
melanie.budden@therealizationgroup.com
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SOURCE KCG Holdings, Inc.