Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

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

Penson Worldwide Inc (PNSN: Quote) 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."

Register
To receive FREE breaking news email alerts for Penson Worldwide Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Specialty drugmaker Horizon Pharma plc (HZNP) on Friday managed to redomicile itself as an entity incorporated in Ireland following the completion of its $660 million acquisition of Vidara Therapeutics International plc. The deal will help it avoid paying the high rate of U.S. corporate taxes. The... Stocks showed a lack of direction over the course of the trading day on Friday after failing to sustain an initial upward move. Despite the choppy trading, the Dow once again managed to end the session at a new record closing high. The major averages turned in a mixed performance on the day. President Barack Obama delivered a statement Thursday evening thanking members of Congress for voting to approve legislation granting the U.S. military the authority to train and arm moderate Syrian rebels fighting against the terrorist group known as the Islamic State.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.