Instinet is to acquire ProTrader Group, a provider of dealing technologies and electronic brokerage services for day traders, for $150 million, reports Reuters.
According to the news and information vendor, the non-binding deal is subject to a definitive agreement, regulatory approvals and other conditions.
Reuters says Instinet may pay $100 million of the $150 million purchase cost using newly issued shares of its common stock.
The New York-based Reuters subsidiary is in the process of going public, offering 29.5 million common shares for a price estimated to range from $11.50 to $13.50 apiece. When the IPO is completed, Reuters will continue to own about 87.5 percent of the company.