NEW YORK (CNNfn) - Recently-gone-public Goldman Sachs Group Inc. is buying Hull Group Inc., a Chicago-based electronic trading company, for $531 million in stock, options and cash, the investment bank announced Monday.
The transaction is Goldman's first purchase since it became a publicly traded company in May; the $3.66 billion initial public offering was the second largest ever. At the time, Goldman said it was selling stock partly to have cash and shares available for some acquisitions.
Hull -- which employs 250 software developers, financial engineers, traders and support personnel -- will help give Goldman a more firm footing in the electronic trading business, according to Goldman Chairman Henry Paulson Jr. Hull is a market maker on 28 different exchanges in nine different countries.
"This acquisition highlights Goldman Sachs' strategy of expanding our electronic market-making capabilities," Paulson said in a statement.
The agreement shelves Hull's plan for its own initial public offering. Hull had filed with the Securities and Exchange Commission for an IPO, which it had expected to complete at the end of this month.
The Goldman-Hull agreement, which is subject to regulatory approval, is expected to be completed by the fall. Goldman (GS) shares rose 1-3/8 to 68-5/8 in early Monday trading.