Market Overview

GFI Group Acquired By CME Group; Stock Up 39%

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GFI Group (NYSE: GFIG) is up almost 40 percent as a result of CME Group's (NASDAQ: CME) buyout of Trayport and FENICS.

CME Group will acquire all the outstanding shares of GFI Group in exchange for $4.55 per share in CME Group Classs A Common stock, which is a 46 percent premium from Tuesday's trading price of $3.11 per share.

Following CME Group's acquisition of GFI Group, a private consortium of GFI Group Management will spin-off and manage the wholesale broker and clearing business. The consortium led by Chairman Michael Gooch, CEO Colin Heffron and Managing Director Nick Brown will buy the wholesale broker and clearing business for $165 million in cash, which will include at closing approximately $63 million of unvested deferred compensation and other liabilities.

The GFI Group brokerage business will maintain its commitment to both Trayport and FENICS through long-term commercial agreements. The deal is expected to close in early 2015.

Early in Wednesday's session, shares of GFI are up 39.87 percent at $4.35. CME is about even.

Posted-In: News M&A Hot Movers


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