KeyCorp 's KEY banking subsidiary, KeyBank National Association, has successfully completed the acquisition of HelloWallet from Morningstar, Inc. MORN . Financial terms of the deal, which was announced in May, has not been disclosed yet.



Following the news, shares of KeyCorp increased nearly 1.5%.



HelloWallet, a personal financial software product, provides financial assistance and guidance to its users by looking at their financial health and giving them a score based on the same.



KeyBank has been using the HelloWallet software since 2015, which has helped hundreds of its clients improve their financial wellness score. So far, KeyBank has benefitted from its relationship with HelloWallet and has liked the high-tech software very much.



With the completion of its acquisition, KeyBank is now in a better position to support its clients.



Dennis Devine, head of KeyCorp's consumer and business banking segment and co-president of community banking for KeyBank, said, "Adding the talented HelloWallet team to KeyBank enables us to do even more to help more clients."



He further added, "We've seen the difference our financial wellness initiative makes every day for our retail bank clients, helping them understand their finances and enabling them to make more confident financial decisions. We believe financial wellness can make the same difference for our business client's employees, and we will make financial wellness the centerpiece of our already strong Key@Work program."



Shares of KeyCorp have increased 76.1% in the last one year, outperforming the Zacks categorized Banks - Major Regional industry's of 49.4%.







Given the solid capital and balance sheet position, the company remains well positioned to further grow through acquisitions. Notably, in 2016, KeyCorp completed the acquisition of First Niagara Financial Group, the benefits of which the company will continue to reap for the next few years.



Currently, KeyCorp carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .



Other top-ranked stocks in the same space include Comerica Incorporated CMA and The PNC Financial Services Group, Inc. PNC , each carrying a Zacks Rank #2.



Comerica witnessed an upward earnings estimate revision of nearly 1% for the current year in the last 60 days. Moreover, its shares have surged 92.9% in the last one year.



PNC Financial's current year earnings estimates have been marginally revised upward in the last 60 days and its share price gained 63.4% in the last one year.



Today's Stocks from Zacks' Hottest Strategies



It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.



And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report </s> Travelers Cos. earnings fell in the first quarter as tornadoes, hail storms and icy weather caused significant catastrophe losses.

Virtu Financial Agrees to Buy KCG Holdings for $1.4 Billion

High-speed trading firm Virtu Financial Inc. reached a deal to acquire rival KCG Holdings Inc. for $1.4 billion in cash, a tie-up that would create an electronic trading giant responsible for around one-fifth of volume in U.S. equities.

The U.K. government sold the Green Investment Bank to a consortium led by Australian bank Macquarie Group, in a deal that was delayed by political opposition to the sale of the state-backed renewable energy fund.

The Trump administration appears unlikely to upend decades of global financial cooperation by scorning the International Monetary Fund and World Bank, a source of comfort to central bankers and finance ministers gathering this week in Washington.

Blackstone Posts Its 'Best Quarter' for Realizations

Blackstone Group's first-quarter profit rose more than expected, as buoyant markets fueled appreciation in the firm's investments and enabled it to sell prior years' holdings at a record pace.

Big fund managers are for the first time saying they are comfortable with including domestic Chinese equities in key global indexes, a sign that the mainland's large stock markets may finally be coming of age.

U.S. Rate Increases Have Smaller Impact on China's Capital Flows

U.S. interest-rate increases are having a smaller impact on China's capital flows than before, the country's foreign-exchange regulator said.

U.S. Bancorp plans on May 1 to launch a premium card geared toward high spenders and millennials, adding to the threats facing American Express in a card category where it was until recently unrivaled.

Volcker Open to Tweaking Dodd-Frank, but Not the Volcker Rule

Former Federal Reserve Chairman Paul Volcker, known as a champion of postcrisis financial rules, said Wednesday he was open to making some changes to the Dodd-Frank regulatory-overhaul law-but not his namesake rule.

Hearing on GOP Plan to Overhaul Dodd-Frank, CFPB Set for Next Week

The Republicans' blueprint for revamping the 2010 Dodd-Frank Act and the Consumer Financial Protection Bureau is set for a hearing next week, kicking off what is likely to be a fierce debate over loosening regulations for Wall Street. </s> New York — A US government panel rejected Ant Financial’s acquisition of US money transfer company MoneyGram International over national security concerns, the companies said on Tuesday.

This is the most high-profile Chinese deal to be torpedoed under the administration of US President Donald Trump.

The collapse of the $1.2bn deal represents a blow for Jack Ma, the executive chairman of Chinese internet conglomerate Alibaba Group Holding, who owns Ant Financial together with Alibaba executives.

He was hoping to expand Ant Financial’s footprint amid fierce domestic competition from Chinese rival Tencent Holdings’ WeChat payment platform.

Ma, a Chinese citizen who appears frequently with leaders from the highest echelons of the Communist Party, had promised Trump in a meeting a year ago that he would create 1-million US jobs.

MoneyGram shares were down 8.5% at $12.06 in after-market trading.

The companies decided to terminate their deal after the Committee on Foreign Investment in the US (CFIUS) rejected their proposals to mitigate concerns over the safety of data that can be used to identify US citizens, according to sources familiar with the confidential discussions.

"Despite our best efforts to work cooperatively with the US government, it has now become clear that CFIUS will not approve this merger," MoneyGram CEO Alex Holmes said.

A standard CFIUS review lasts up to 75 days and the companies went through the process three times to address concerns.

The additional security measures and protocols that the companies suggested failed to reassure CFIUS, the sources said.

The US Treasury said it was prohibited by statute from disclosing information filed with CFIUS and declined to comment on the MoneyGram deal.

The US government has toughened its stance on the sale of companies to Chinese entities, at a time when Trump is trying to put pressure on China to help tackle North Korea’s nuclear ambitions and to be more accommodative on trade and foreign exchange issues.

The MoneyGram deal is the latest in a string of Chinese acquisitions of US companies that have failed to clear CFIUS reviews.

They include China-backed buy-out fund Canyon Bridge Capital Partners’ $1.3bn acquisition of US chip maker Lattice Semiconductor; and Chinese buy-out firm Orient Hontai Capital’s $1.4bn acquisition of US mobile marketing firm AppLovin.

In November, China Oceanwide Holdings Group and Genworth Financial extended a deadline to April 1 for the Chinese group’s planned $2.7bn takeover of the US life insurer.

The demise of the MoneyGram deal is also the latest example of how CFIUS’s focus on cyber security and the integrity of personal data is prompting it to block deals in sectors not traditionally associated with national security, such as financial services.

Other US financial services deals by Chinese companies awaiting CFIUS approval include HNA Group’s acquisition of hedge fund-of-funds firm SkyBridge Capital from Anthony Scaramucci, the Trump administration’s former communications director.

SkyBridge and HNA did not immediately respond to requests for comment.

Dallas-based MoneyGram has about 350,000 remittance locations in more than 200 countries.

Ant Financial was looking to take over MoneyGram not so much for its US presence but to expand in growing markets outside China.

Ant Financial and MoneyGram said they would now explore and develop initiatives to work together in remittance and digital payments in China, India, the Philippines and other Asian markets, as well as in the US.

This co-operation would take the form of commercial agreements, one of the sources said.

Any arrangements reached by Ant Financial and MoneyGram that do not involve a transaction would not be subject to review by CFIUS.

Some US legislators, including Republican senators Pat Roberts and Jerry Moran, had written to Treasury Secretary Steven Mnuchin, who also serves as chairman of CFIUS, to express concern that Ant Financial’s acquisition of MoneyGram could pose national security threats, arguing that the information of US citizens, including military personnel, could be compromised.

Ant Financial had argued that MoneyGram’s data infrastructure would remain in the US, with personal information encrypted or held in secure facilities on US soil.

It had also pointed to existing US regulations that call for such protections.

Ant Financial clinched an $18-per-share all-cash deal to acquire MoneyGram in April, seeing off competition from US-based Euronet Worldwide, which had made an unsolicited offer for MoneyGram and openly lobbied US legislators, saying Ant’s proposal created a national security risk.

Ant Financial said it paid MoneyGram a $30m termination fee for the deal’s collapse. </s> * Virtu financial, inc. Agrees to acquire kcg holdings, inc

* Virtu financial -virtu has agreed to acquire kcg in a cash transaction valued at $20.00 per kcg share, or a total of approximately $1.4 billion

* Virtu financial - transaction expected to close during q3 in 2017 after receipt of kcg shareholder approval and all required regulatory approvals

* Virtu financial inc - within two years of completion of deal , virtu expects to realize about $208 million of net pre-tax expense savings

* Deal has been unanimously approved by the board of directors of each company

* Virtu financial - virtu intends to maintain its annual dividend of $0.96 per share after the close of the transaction

* Virtu financial - following the close of the transaction, douglas a. Cifu, virtu ceo, will remain ceo of the combined company

* Virtu financial inc says intends to fund cash transaction & debt refinancing with new gross borrowings of $1.65 billion and sale of $750 million of stock

* $750 million will be financed through the issuance of common stock at $15.60 per share

* Virtu financial inc - joseph a. Molluso, virtu cfo, will remain the cfo of the combined company

* Virtu financial inc - within two years of completion of deal , virtu expects to realize $440 million of capital synergies

* Virtu financial - also entered into a commitment with j.p. Morgan securities llc, to provide up to $1.65 billion of debt financing for the transaction

* Virtu financial - following deal close, combined co board will consist of 10 directors, including 8 of 10 members currently serving on virtu board

* Virtu financial inc - 2 new members from north island, robert greifeld and glenn hutchins, will join virtu’s board of directors

* Virtu financial inc - over 25% accretion to virtu earnings per share with fully-phased cost savings and capital synergies following deal

* Virtu financial - north island will invest $625 million in virtu common stock, in partnership with gic and public sector pension investment board

* Virtu financial - temasek has committed to invest an additional $125 million in virtu common stock Source text for Eikon: Further company coverage:

Read the original article on Reuters. Copyright 2017. Follow Reuters on Twitter. </s> Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

ZHEJIANG EXPRESSWAY CO., LTD

(A joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock code: 0576)



CONNECTED TRANSACTION

IN RELATION TO

CAPITAL INCREASE IN ZHEJIANG COMMUNICATIONS

INVESTMENT GROUP FINANCE CO., LTD.

THE CAPITAL CONTRIBUTION AGREEMENT

On 14 October 2016, the Company entered into the Capital Contribution Agreement with Zhejiang Communications Finance and the Existing Shareholders, pursuant to which the Company agreed to contribute an amount of RMB350,000,000, by way of cash, into the equity capital of Zhejiang Communications Finance, an associate of the Company.

LISTING RULES IMPLICATIONS

As at the date of this announcement, Communications Group holds approximately 67% of the issued share capital of the Company. By virtue of this shareholding interest, Communications Group is a controlling shareholder of the Company. As at the date of this announcement, Communications Group also directly and indirectly, through Ningbo Expressway Co and Taizhou Expressway Co, holds 65% of the issued share capital of Zhejiang Communications Finance. Therefore, Zhejiang Communications Finance, being a subsidiary of Communications Group, is a connected person of the Company and as a result, the transaction under the Capital Contribution Agreement constitutes a connected transaction for the Company under Chapter 14A of the Listing Rules.

As the applicable percentage ratios in respect of the transactions contemplated under the Capital Contribution Agreement are more than 0.1% but less than 5%, the Capital Contribution Agreement is subject to the reporting, announcement and annual review requirements but exempt from the independent Shareholders' approval requirement under Chapter 14A of the Listing Rules.

THE CAPITAL CONTRIBUTION AGREEMENT

On 14 October 2016, the Company entered into the Capital Contribution Agreement with Zhejiang Communications Finance and the Existing Shareholders, pursuant to which the Company agreed to contribute an amount of RMB350,000,000, by way of cash, into the equity capital of Zhejiang Communications Finance, an associate of the Company.

The principal terms of the Capital Contribution Agreement are set out below:

Capital Contribution

Pursuant to the Capital Contribution Agreement, the Existing Shareholders and the Company agreed to contribute capital in cash to Zhejiang Communications Finance on a pro rata basis in proportion to their existing shareholding in Zhejiang Communications Finance in the aggregate amount of RMB1 billion, of which the Company agreed to contribute an amount of RMB350,000,000 based on its current shareholding in Zhejiang Communications Finance. The Company intends to satisfy the Capital Contribution by way of its internal resources.

Basis of determination of the Capital Contribution

The amount of capital contributions to be made by the Company and the Existing Shareholders in the aggregate sum of RMB1 billion was determined after arm's length negotiations amongst the parties with reference to the future capital need of Zhejiang Communications Finance.

Timing of the Capital Contribution

SubjecttotheCapitalContributionAgreementbecomingeffective,thecapital contribution by the Company is expected to be made on or before 20 October 2016.

Conditions precedent and effective date

Completion of the Capital Contribution Agreement is conditional upon the approval of CBRC having been obtained in connection with the Capital Contribution Agreement, and the Capital Contribution Agreement will become effective on the date on which it is approved by CBRC.

REASONS FOR AND BENEFITS OF THE CAPITAL CONTRIBUTION

The Directors expect that Zhejiang Communications Finance will play a larger role as a fund management platform for the Communications Group following the merger of the Communications Group and Zhejiang Railway Investment Group in August 2016. The operation scale of Zhejiang Communications Finance is, however, constrained by the size of its capital and the existing capital level of Zhejiang Communications Finance is no longer sufficient to support its expansion and satisfy the business needs of the Communications Group (including the Company).

As a non-bank financial institution, the operations of Zhejiang Communications Finance are subject to various capital requirements imposed by the People's Bank of China and CBRC. For instance, the amount of financial debts that Zhejiang Communications Finance may issue must not exceed its total capital, the amount of short term securities investments it may hold (including short term currency funds and fixed income products) must not exceed 40% of its total capital, the amount of long term investments it may hold must not exceed 30% of its total capital, and the amount of guarantee it may provide to Communications Group and its subsidiaries must not exceed its total capital. The Capital Contribution is therefore necessary for the progressive development of Zhejiang Communications Finance. The Capital Contribution would also enable Zhejiang Communications Finance to cope with the enhanced regulatory requirements on capital sufficiency and capital management by non-bank financial institutions imposed by regulators such as the People's Bank of China and the CBRC.

It is important for Zhejiang Communications Finance to continue expanding its business scope in order to serve the subsidiaries of the Communications Group (including the Company), and the level of capital is an important criteria to be considered by the regulators when applying for the operation of new businesses. The Capital Contribution will enable Zhejiang Communications Finance to expandits businessscope,operate new business and maintain its status in the industry.

ZhejiangCommunicationsFinancehasshownastrong growth inincomeand profitability since its establishment in December 2012, with an average return on net assets at approximately 14% in the past three years. The Directors consider that the Capital Contribution will provide a satisfactory return to the Company.

Given the above, the Directors (including the independent non-executive Directors) are of the view that the terms of the Capital Contribution Agreement are on normal commercial terms, in the ordinary and usual course of business of the Company and are fair and reasonable and in the interests of the Company and theShareholders asa whole.

INFORMATION ON ZHEJIANG COMMUNICATIONS FINANCE

Zhejiang Communications Finance is a limited liability company incorporated in the PRC on 9 November 2012 and approved by CBRC as a non-banking financial institution on 17 October 2012 with a registered capital of RMB1 billion as at the date of this announcement. As at the date of this announcement, Zhejiang Communications Finance is owned as to 40%, 35%, 15.625% and 9.375% by Communications Group, the Company, Ningbo Expressway Co and Taizhou Expressway Co, respectively, and Zhejiang Communications Finance is an associate of the Company.

Zhejiang Communications Finance is principally engaged in the business of providing financial services to the subsidiaries of Communications Group, including but not limited to advising the subsidiaries of Communications Group in relation to financing, letters of credit and other agency services; authorised insurance agency businesses; providing guarantees, accepting and discounting commercial notes, arranging for loans and financial leases, and receiving deposits of the subsidiaries of Communications Group.

According to the audited financial statements of Zhejiang Communications Finance, the total assets of Zhejiang Communications Finance as at 31 December 2015 were approximately RMB6,270,342,000. Zhejiang Communications Finance recorded an operating revenue of approximately RMB270,333,000 and a profit before tax of approximately RMB186,144,000 for the year ended 31 December 2015.

Uponcompletionof theCapitalContribution, theregistered capitalofZhejiang Communications Finance will be increased from RMB1 billion to RMB2 billion, and the shareholding percentage of the Company and the Existing Shareholders in Zhejiang Communications Finance will remain unchanged.

LISTING RULES IMPLICATIONS

As at the date of this announcement, Communications Group holds approximately 67% of the issued share capital of the Company. By virtue of this shareholding interest, Communications Group is a controlling shareholder of the Company. As at the date of this announcement, Communications Group also directly and indirectly, through Ningbo Expressway Co and Taizhou Expressway Co, holds 65% of the issued share capital of Zhejiang Communications Finance. Therefore, Zhejiang Communications Finance, being a subsidiary of Communications Group, is a connected person of the Company and as a result, the transaction under the Capital Contribution Agreement constitutes a connected transaction for the Company under Chapter 14A of the Listing Rules.

As the applicable percentage ratios in respect of the transactions contemplated under the Capital Contribution Agreement are more than 0.1% but less than 5%, the Capital Contribution Agreement is subject to the reporting, announcement and annual review requirements but exempt from the independent Shareholders' approval requirement under Chapter 14A of the Listing Rules.

EachofMr.ZhanXiaozhang,Mr. WangDongjie,Mr.Dai BenmengandMr.Zhou Jianping holds certain senior position in Communications Group, so they have abstained from voting on the board resolution with respect to the approval of the Capital Contribution Agreement. Save for Mr. Zhan Xiaozhang, Mr. Wang Dongjie, Mr. Dai Benmeng and Mr. Zhou Jianping, none of the Directors has any material interest in the Capital Contribution Agreement or is required to abstain from voting on the relevant Board resolutions to approve the same.

INFORMATION ON THE PARTIES

The Company is a joint stock company established under the laws of the PRC with limited liability on 1 March 1997, the H Shares of which are listed on the Main Board of the Stock Exchange. It is principally engaged in investing in, developing and operating high-grade roads in the PRC. The Group also carries on certain other businesses such as operation of gas stations, restaurants and shops in service areas, advertising at expressway interchanges and external road maintenance, as well as securities related business.

Communications Group is a wholly state-owned enterprise established in the PRC on 29 December 2001 and is principally engaged in a diverse range of businesses, including investment, operations, maintenance, toll collection and ancillary services of expressways, construction and building of transportation project, ocean and coastal transport, as well as real estate.

Ningbo Expressway Co. is a limited liability company incorporated in the PRC and a 75% owned subsidiary of Communications Group and is principally engaged in the operation and management of the Ningbo section of the Ningbo-Taizhou-Wenzhou expressway.

Taizhou Expressway Co. is a limited liability company incorporated in the PRC and a 75% owned subsidiary of Communications Group and is principally engaged in the operation and management of the Taizhou section of the Ningbo-Taizhou-Wenzhou expressway.

As of the date of this announcement, the executive directors of the Company are: Mr. ZHAN Xiaozhang, Mr. CHENG Tao and Ms. LUO Jianhu; the non-executive directors of the Company are: Mr. WANG Dongjie, Mr. DAI Benmeng and Mr. ZHOU Jianping; and the independent non-executive directors of the Company are: Mr. ZHOU Jun, Mr. PEI Ker-Wei and Ms. LEE Wai Tsang Rosa. </s> (Adds Anthem, EDP, Televisa, Novo Banco, Frontline, Societe Generale, Schroders and National Aluminium; updates Virtu Financial)

April 20 (Reuters) - The following bids, mergers, acquisitions and disposals were reported by 2000 GMT on Thursday:

** Virtu Financial Inc said it would buy rival KCG Holdings Inc in a $1.4 billion deal that brings together two major players in the U.S. electronic trading space.

** Germany’s Beiersdorf, the maker of Nivea skin cream, still prefers hoarding cash to fund possible acquisitions over raising its dividend, supervisory board Chairman Reinhard Poellath told shareholders.

** Sanofi is looking at potential acquisitions of devices, such as blood glucose testing kits, to boost its diabetes business, a senior executive at the French drugmaker said.

** Western Digital Corp, the U.S. partner of Toshiba Corp in a semiconductor venture, is in talks with state-backed fund Innovation Network Corp of Japan and the Development Bank of Japan and would consider a joint bid with them for the chip business, a senior official said.

** The British government said it will sell the Green Investment Bank to a consortium led by Macquarie Bank in a deal worth 2.3 billion pounds ($3 billion), which critics said failed to guarantee its future.

** Japan’s Sawai Pharmaceutical Co Ltd is buying the generic drug business of U.S. drug maker Upsher-Smith Laboratories Inc for $1.05 billion, marking the Osaka-based generic drugmaker’s first overseas acquisition.

** Chinese tech conglomerate LeEco is in talks to sell a prized property asset in the heart of Beijing it acquired in a $420 million deal last year, the latest effort by the electric car-to-smartphone behemoth to raise funds amid a severe cash crunch.

** Belgian publisher Mediahuis and partner VP Exploitatie have launched a recommended cash offer for the Netherlands’ Telegraaf Media Group, the three parties said in a statement, as they try to build a Dutch-Belgian multimedia company.

** Mubadala Capital, an arm of Abu Dhabi’s state fund Mubadala, said it had conducted a private equity transaction with European fund manager Ardian, which had committed to invest $2.5 billion in the deal.

** German glasses retailer Fielmann could pursue takeovers in the future, marketing chief Marc Fielmann, the son of company founder Guenther Fielmann, told magazine Capital in an interview.

** Shares in Italian toll-road operator Atlantia extended losses in early afternoon following a downgrade by Deutsche Bank, which highlighted the risks of a possible combination with Spanish rival Abertis.

** Spain’s Banco Popular CEO Ignacio Sanchez-Asiain said the lender’s current priority is the sell off of non-performing real estate assets as it fights to return to profits and improve its capital.

** Brazilian police conducted raids on Wednesday as part of an investigation of state-controlled Caixa Econômica Federal’s purchase of a stake in a consumer lender six years ago, the latest scandal rocking the nation’s largest mortgage lender.

** India raised 12 billion rupees ($185.7 million) from a 9.2 percent stake sale in state-run National Aluminium Co (NALCO), the government said, kicking off its asset sale programme for the new financial year.

** British asset manager Schroders said it had agreed to buy Swiss-based private equity firm Adveq Holding for an undisclosed sum.

** Croatia’s competition regulator AZTN has approved the sale of Splitska Banka by Societe Generale to the local unit of Hungary’s OTP Group, increasing OTP’s market share in Croatia to over 10 percent.

** A U.S. court has rejected a last-minute effort by billionaire investor John Fredriksen’s Frontline to prevent BW Group from acquiring a major stake in rival oil tanker firm DHT Holdings, DHT said.

** A failed bidder for Portugal’s third-largest lender Novo Banco has asked its lawyers to block the 1 billion euro ($1.08 billion) sale to U.S. fund Lone Star and told the central bank it should relaunch the bidding.

** Health insurer Anthem Inc denied a report on Thursday that it was in negotiations with the Justice Department in an effort to save its merger with smaller rival Cigna Corp .

** Mexican broadcaster Televisa said it had signed a deal with Spanish telecoms giant Telefonica that would give the mobile operator’s customers cheaper access to the broadcaster’s content carried on its digital platform Blim.

** London hedge fund firm Ecofin said an offer from Portugal’s largest company EDP to buy 22.47 percent of subsidiary EDP Renovaveis “significantly undervalues” the company, in a letter to EDPR’s board seen by Reuters. (Compiled by Ahmed Farhatha and Divya Grover in Bengaluru) </s> Electronic trading company Virtu Financial (VIRT) has announced an agreement to acquire KCG Holdings (KCG) for $1.4 billion in cash.

KCG brings wholesale and independent agency execution capabilities while providing the opportunity for significant cost savings.

As trading competition escalates, the deal is a harbinger of consolidation to achieve scale and cost synergies.

New York-based KCG was founded originally as Knight Capital Group in 1995 to provide high-frequency trading capabilities to financial firms.

In 2012, the firm was acquired by Getco, which then formed KCG Holdings shortly after that.

Management is headed by CEO Daniel Coleman and CFO Steffen Parratt, who will each remain CEO and CFO of the combined firm post-acquisition.

Below is a brief demo video about KCG’s trade execution proposition:

KCG has over 1,100 employees in offices in the U.S., western Europe and Asia.

Virtu intends to acquire KCG for $20 per share, or $1.4 billion in an all cash transaction.

The deal will be funded through new gross borrowings of $1.65 billion [via J.P. Morgan Securities] and the sale of $750 million of common stock, priced at $15.60 per share.

In addition, a syndicate comprised of North Island, GIC Singapore and PSP Investments will invest $625 million in Virtu common stock. Existing shareholder Temasek will invest $125 million in common stock. Both commitments are subject to a successful transaction closing.

North Island is a special purpose vehicle begun by Glenn Hutchins and Bob Griefeld, who will be joining the board concurrently with the transaction close.

Virtu management states that the deal will add scale and cost savings:

Furthermore, according to Virtu management’s investor presentation on the deal, it promises to provide ‘over 25% accretion to Virtu earnings per share with fully-phased cost savings and capital synergies.'

The acquisition also seeks to combine KCG’s independent agency execution and wholesale market making focus with Virtu’s order routing and liquidity offerings.

In an increasingly competitive environment, Virtu is saying that scale matters. Tight margins are making life difficult for high-frequency traders.

Combining operations will help reduce expenses, which have ballooned in recent years during an ‘arms race’ to provide more data and ever faster executions to clients.

The deal provides Virtu with exposure to KCG’s ’retail wholesaler’ market, which enables high-frequency firms to pay online brokerages to execute orders from small, retail investors.

The combined group is a promising concept that looks good on paper. The question is whether it can integrate and grow its operations, especially in an uncertain macro market environment.

I write about M&A deals and IPOs. Click the Follow button next to my name at the top or bottom of this article if you want to receive future articles automatically.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. </s> SILVER SPRING, Md. — Discovery Communications is buying Scripps Networks Interactive Inc. in a cash-and-stock deal worth $14.6 billion.

The transaction is valued at $90 per share, about a 4 percent premium to Scripps' Friday closing price of $86.91.

The buyout is targeted to close by early next year. </s> WASHINGTON (dpa-AFX) - BlackRock (BLK) announced it has entered into an agreement to acquire 100% of the equity interests in eFront, an end-to-end alternative investment management software and solutions provider, from private equity firm Bridgepoint and eFront employees, for $1.3 billion in cash. Following completion of the notification and consultation process with eFront's employee-works council, BlackRock and eFront's shareholders are expected to enter into a definitive securities sale agreement. 



eFront, which serves more than 700 clients in 48 countries, is a technology solution for managing the alternatives investment lifecycle, from due diligence and portfolio planning to performance and risk analysis, across a range of alternative asset classes. 



BlackRock stated that the eFront transaction will be funded with a combination of existing corporate liquidity and debt. While minimally dilutive to earnings per share, the transaction will not be dilutive on a cash basis, the company noted.



'Technology and illiquid alternatives are two pillars of BlackRock's growth, and this transaction provides a unique opportunity to accelerate our positioning in both,' said Laurence Fink, Chairman and CEO of BlackRock.



Separately, BlackRock announced, on March 20, the company entered into an agreement to repurchase approximately 3.1 million of its shares at a per share price of $412.84 in a private transaction under its existing repurchase program. The share repurchase transaction is expected to close on March 25. 



BlackRock stated that, as of March 25, it will have repurchased an aggregate of approximately $1.6 billion of its shares in 2019 and will have completed the targeted level of share repurchases for the year, but will remain opportunistic should relative valuation opportunities arise.



Copyright RTT News/dpa-AFX
KeyCorp finalizes its purchase of financial app HelloWallet.