KCG Holdings (KCG) Completes $365M Sale of KCG Hotspot

KCG Holdings (NYSE: KCG) announced the completion of the sale of spot FX trading venue KCG Hotspot to BATS Global Markets. At the close, based on the $365 million purchase price, KCG received cash proceeds representing approximately $225 million on an after-tax basis.

KCG can receive up to approximately $70 million in additional consideration in the three-year period following the close pursuant to a tax sharing arrangement. The additional consideration will appear on the balance sheet at its discounted fair value. As previously announced, with the close of the transaction, KCG's tangible book value will increase by approximately $2.00 per share. In addition, as a result of the sale, KCG's headcount will be reduced by approximately 40 full-time employees.

KCG was advised on the transaction by Jefferies LLC and Sullivan & Cromwell LLP.

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