NEW YORK (AP) -- THE BUYOUT: Trading firm Getco Holding Co. is purchasing its competitor, Knight Capital, in a cash-and-stock deal that the companies value at $1.4 billion. The transaction comes almost five months after a major software malfunction at Knight Capital roiled financial markets.
CASH-AND-STOCK: Knight shareholders can choose $3.75 per share in cash or one share of stock in the new holding company. The per-share price is a 13 percent premium to Knight's Tuesday closing price. But it's a fraction of the company's worth before the meltdown.
CLOSING TIME: The transaction is expected to be completed in the second quarter of 2013.