GFI Group, the New York-based interdealer broker, is to buy 70% of Kyte Group, the London derivatives clearing and broking outfit, for cash and shares worth £38.3m. The Financial Services Authority has approved the transaction, expected to close in July.
The 1,700-strong New York-based firm will pay an initial £22.4m in cash, followed by GFI shares valued at £15.9m. Its acquisition of the remaining 30% equity stake in the group will depend on Kyte’s performance over a three year period ending June 30, 2013, GFI said in a statement....