Source: Knight Capital Group
Knight Capital Group, Inc. (Nasdaq: NITE) today announced the completion of the acquisition of EdgeTrade Inc., a privately-held firm for $59.5 million comprising $29.5 million in cash and approximately 2,285,000 shares of unregistered Knight stock.
EdgeTrade is a leading agency-only trade execution and algorithmic software firm that allows buy- and sell-side clients to more effectively source liquidity and manage the trading process as well as maintain anonymity, reduce market impact and lower transaction costs.
"In an increasingly fragmented marketplace, buy- and sell-side firms want sophisticated algorithms that facilitate anonymous and efficient trading," said Thomas M. Joyce, Chairman and Chief Executive Officer, Knight Capital Group. "The EdgeTrade acquisition clearly strengthens our electronic trade execution services in 2008. We're pleased to note the integration is underway and are excited about the future development of our next generation algorithms."
Knight also announced that EdgeTrade's algorithms, including smart order execution, benchmark and participation strategies, are now available on its broker-neutral trading platform Knight Direct. Further, Knight will change the name of Knight Direct, which provides clients with access to liquidity by means of multiple destinations across multiple asset classes, to Knight Direct EMS.