BATS Global Markets agreed to acquire institutional spot foreign exchange network Hotspot FX from KCG Holdings for $365 million in cash, said news releases from BATS and KCG.
The acquisition marks BATS' entry into the foreign-exchange market, said Randy Williams, BATS spokesman. Hotspot's average daily volume in the fourth quarter was $31.7 billion.
KCG officials said last November they were putting the electronic communication network on the market.
BATS was advised on the transaction by J.P. Morgan Securities and the law firm of Davis Polk and Wardwell. KCG was advised by Jefferies and the law firm of Sullivan & Cromwell.
The acquisition is expected to close in the second quarter.
Sophie Sohn, spokeswoman at KCG, could not be immediately reached for further details.