Merger of Virtu Financial, Inc. and KCG Holdings, Inc. (Tables)

9 Months Ended

Sep. 30, 2017

Merger of Virtu Financial, Inc. and KCG Holdings, Inc.

Summary of the estimated fair values of the assets acquired and liabilities assumed

(in thousands)
Cash and equivalents	$	592,993
Cash and securities segregated under federal regulations		3,000
Securities borrowed		1,406,444
Securities purchased under agreements to resell		16,894
Receivables from broker dealers and clearing organizations		553,031
Financial instruments owned, at fair value		2,095,339
Property, equipment and capitalized software (net)		112,204
Intangibles		156,300
Deferred taxes		22,928
Other assets		331,820
Total Assets	$	5,290,953
Securities loaned	$	166,189
Securities sold under agreements to repurchase		841,606
Payables to broker dealers and clearing organizations		536,653
Payables to customers		17,583
Financial instruments sold, not yet purchased, at fair value		1,756,647
Accounts payable and accrued expenses and other liabilities		239,004
Debt		480,987
Total Liabilities	$	4,038,669
Total identified assets acquired, net of assumed liabilities	$	1,252,284
Goodwill	$	143,012
Total Purchase Price	$	1,395,296

Schedule of Preliminary allocation of intangible assets, amortization period and goodwill

			Amortization
		Amount	Years
Technology	$	67,800	1-6 years
Customer relationships		77,100	13 - 17 years
Trade names		5,000	10 years
Exchange memberships		6,400	Indefinite
Intangible assets	$	156,300
Goodwill		143,012
Total	$	299,312

Schedule of Proforma Pro forma results

Included in the Company’s results for the three months ended September 30, 2017 are results from the business acquired as a result of the Acquisition, from the date of Acquisition, July 20, 2017 through September 30, 2017 as follows:

(in thousands)
Revenues	$	149,327
Income (loss) before income taxes		(12,578)

Schedule of Proforma Financial Information with Combined Historical Results

	For the Three Months Ended				For the Nine Months Ended
(in thousands, except per share amounts)		2017		2016		2017		2016
Revenue	$	304,020	$	373,338	$	1,068,164	$	1,401,819
Net income (loss)		(82,520)		1,783		(117,169)		163,146
Net income (loss) attributable to common stockholders		(30,432)		658		(43,210)		60,165
Diluted earnings (loss) per share	$	(0.35)	$	0.01	$	(0.48)	$	0.67