Bank of New York said Friday that it has signed a definitive agreement to buy Lynch, Jones & Ryan Inc., a commission-recapture services subsidiary, from Instinet Group Inc.

It is to pay $159 million in cash, including $5 million if Lynch Jones hits a second-quarter revenue target that was not disclosed. The bank will run Lynch Jones as a subsidiary of BNY Brokerage Inc., its agency brokerage arm. The deal, expected to close at the end of June, is subject to regulatory approval.

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