Knight Capital Group in move to buy Astor Asset Management

Knight Capital Group is to acquire Astor Asset Management, a money management company specialising in macro-economic strategy and exchange traded funds (ETF) portfolio construction.

The deal is priced at around $20 million in cash and stock.

Founded by managing partner Robert Stein in 2001, Astor Asset Management provides retail and institutional investors with capital appreciation while managing risk in diverse market conditions. The company uses proprietary macro-economic models to construct portfolios of ETFs which are offered through advisors within separately managed accounts and the Astor Long/Short ETF Mutual Fund.

Astor is a registered investment advisor with the SEC. The company has 13 employees and approximately $560 million in assets under management.

"Astor assets under management in the separately managed accounts and new mutual fund have increased substantially in the past few years," according to Thomas Joyce, chairman and CEO of Knight Capital Group.

The acquisition is expected to be completed in the fourth quarter of 2010 and accretive to Knight's earnings per share in 2011. After the deal closes, Astor Asset Management will be a wholly-owned operating subsidiary of Knight Capital Group.

The advisors to Knight on the transaction are Kirkland & Ellis and K&L Gates. The advisors to Astor Asset Management are Neal, Gerber & Eisenberg and Thompson Hine.

Knight Capital Group is a global financial services company providing market access and trade execution services across multiple asset classes to buy- and sell-side companies. Its hybrid market model features complementary electronic and voice trade execution services in global equities and fixed income as well as foreign exchange, futures and options.