Quick Facts
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

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

5/29/2012 8:29 AM ET

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

Editors Pick
Intel Corp. said Tuesday after the markets closed that its first quarter profit fell 5% from last year, hurt mainly by higher income tax expenses even as revenue grew slightly. The company's quarterly earnings per share came in above analysts' expectations, but its quarterly revenue fell shy of analysts' forecast. With traders digesting a mixed batch of catalysts, stocks saw considerable volatility over the course of the trading day on Tuesday before closing mostly higher. The gains on the day extended the recovery off the two-month lows set last Friday. The major averages showed a notable rebound in afternoon trading to end the day in positive territory. U.S. President Barack Obama and his Russian counterpart Vladimir Putin spoke regarding the ongoing crisis in Ukraine for the first time in over two weeks on Monday, although the two leaders remain far apart on the cause of escalating tensions.
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.