Instinet will be acquired by Reuters Holdings.

Reuters, a world news and information organization, agreed to pay a total of $102 million for the New York-based stock trading service. Reuters, which already owns about 6.6% of Instinet’s outstanding stock, will start a tender offer later this week for up to 5.1 million shares, or 45%, of Instinet’s common stock at $8.50 a share in cash. Following the tender offer, shareholders of the remaining Instinet shares will receive $8.50 worth of Reuter American Depositary Receipts for each share they hold, a joint statement from the two companies said.