logo
Plus   Neg
Share
Email

Penson Worldwide Agrees To Divest Its Futures Division To Knight Capital Group

Penson Worldwide Inc (PNSN) Tuesday announced that it has entered into a definitive agreement with Knight Capital Group Inc (KCG) to sell certain assets and liabilities of the futures division of its U.S broker-dealer subsidiary, Penson Financial Services Inc.

The company further noted that, in consideration for the transfer of certain assets and liabilities of its futures division, it would receive $5 million at closing, a portion of which is subject to the transfer of certain exchange seats or memberships.

The company further added that it would be entitled to receive earn-out payments over the next three years based on the performance of the futures division.

The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to be completed in the second quarter of 2012.

"Knight provides accounts with a stable, well-capitalized, independent platform and it will be 'business as usual' for futures customers," said Philip A. Pendergraft, CEO of Penson Worldwide. "This transaction represents an ideal solution for our futures introducing brokers, customers, and related counterparties, as well as for our other stakeholders. As previously announced, we continue to work on other strategic transactions in both the US and Canadian markets."

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
An administrative law judge has ruled that Minnesota regulators should approve Enbridge Inc.'s proposal to replace its aging Line 3 crude oil pipeline only if the company follows the existing route and not its preferred route. Enbridge has applied to replace its Line 3 pipeline from Alberta with new pipe along its existing route. In Minnesota, the planned route deviates from the existing route. CLICK HERE to see America's 10 Best-Selling Drugs Despite high drug costs, most of the top-selling drugs saw sales gains in 2017 compared to the prior year. A large number of the best-selling drugs are primarily for the treatment and management of cancer, diabetes, inflammatory disorders, and HIV... Most Americans have access to health care, though costs and services vary from state to state. However, higher costs do not necessarily translate into better results. The U.S. continues to be outperformed by other wealthy nations on several measures like life expectancy, disease burden and health...
Follow RTT