Shares of Investment Technology Group (ITG) were up around 8% Wednesday, after word the financial technology company was getting snapped up by Virtu Financial, Inc. (VIRT) - Get Virtu Financial, Inc. Class A Report for about $1 billion.
ITG's stock hit nearly $30 just after the opening bell. Shares of Virtu were also up on the news -- by more than 7% -- to $26.40.
According to the deal, Virtu will buy all outstanding shares of ITG's common stock for $30.30 per share in cash. While that was close to Wednesday's morning price, it's 40% more than ITG's average closing price of $21.55 during most of September, just before talks of a sale.
Virtu, a financial technology firm specializing in trading, says buying independent brokerage firm ITG will allow it to expand business, increase revenue, improve operational efficiency and to use the company's technologies.
"The combination announced today brings together complementary strengths that amplify our ability to help our clients source liquidity and improve their workflow," said Douglas A. Cifu, Virtu's chief executive, in a press statement.
Cifu also praised ITG's services and products, such as those related to workflow and analytics.
The deal is expected to close by the first half of 2019.