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."
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by RTT Staff Writer
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