NEW YORK (AP) — Getco is buying rival trading firm Knight Capital in a cash-and-stock deal that could be worth more than $1 billion. The deal comes just four months after a major software malfunction at Knight roiled markets and threatened the company’s survival.

Knight stockholders have the right to choose $3.75 per share in cash or one share of stock in the new holding company. The per-share price is a 13 percent premium to Knight’s Tuesday closing price. Knight’s stock rose more than 6 percent in premarket trading.

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