DALLAS–(BUSINESS WIRE)–Penson Worldwide, Inc. (NASDAQ: PNSN), a leading provider of execution, clearing and technology services for global financial markets, announced today the acquisition by its futures subsidiary, Penson GHCO, of First Capitol Group LLC (FCG), of Platteville, WI, a leading U.S. futures commission merchant.
The purchase price was approximately $10.8 million, including approximately $8.6 million in cash and $2.2 million in stock, or approximately 149,000 shares, based on the average closing price for the last five days. The acquisition agreement also includes performance-based cash earn out provisions for three years. Initially, the acquisition is anticipated to be non-material to Penson. When FCG is fully integrated, it should help to grow and expand the profitability of Penson’s strategically important futures business.
Under Penson GHCO’s ownership, FCG will continue to provide its industry-leading technology products and services to its introducing brokers and other customers. Founders John D. Streich, President and CEO, and Michelle Streich, Executive Vice President, have signed three year contracts to continue with FCG in those roles. Mr. Streich is a former member of the Board of Directors of the National Futures Association (NFA) as well as the NFA Appeals Committee.
“We are pleased to have an industry leader like John Streich and the other members of FCG join the Penson team,” said Philip A. Pendergraft, CEO of Penson Worldwide. “FCG, currently holding more than $70 million of customer segregated funds, had $12 million in revenues over the last 12 months, is profitable, and has a number of unique brands, strategies and technologies that will work well with our futures business.”
Chris Hehmeyer, CEO of Penson GHCO, noted that “Penson GHCO, combined with FCG, will have more than $260 million in segregated funds. We intend to continue to grow our futures business, both organically and by additional acquisitions, where we have an excellent fit in products and people.”
About Penson Worldwide: www.penson.com
The Penson Worldwide group of companies provides execution, clearing, custody, settlement and technology infrastructure products and services to financial services firms and others servicing the global financial services industry. The Penson Worldwide group of companies includes Penson Financial Services, Inc., Penson Financial Services Canada Inc., Penson Financial Services Ltd., Nexa Technologies, Inc., Penson GHCO and Penson Asia Limited, among other companies. Headquartered in Dallas, Texas, Penson has served the clearing needs of all types of broker/dealers since 1995. Penson is the Flexible Choice in Global Financial Services.
Penson Financial Services, Inc. is a member of the American Stock Exchange, Chicago Stock Exchange, FINRA, the Chicago Board Options Exchange, OneChicago, the International Securities Exchange, the NYSE Arca Exchange, the Options Clearing Corp, the MSRB, NSCC, ICMA, DTC, Euroclear, SIPC and is a participant of the Boston Options Exchange (BOX). Penson Financial Services Canada, Inc. is a participating organization with the Toronto Stock Exchange, the Montreal Exchange, the CNQ Exchange and the TSX Venture Exchange, is regulated by the Investment Dealers Association of Canada, and is a member of the CIPF. Penson Financial Services, Ltd. is a member of the London Stock Exchange and is authorized and regulated by the Financial Services Authority. Penson GHCO is a registered Futures Commission Merchant and clearing member at the Chicago Mercantile Exchange, Chicago Board of Trade, London International Financial Futures Exchange, and ICE Futures.
Forward-Looking Statements
Statements contained in this news release that are not based on current or historical fact are forward-looking in nature. Such forward-looking statements are based on current plans, estimates and expectations. Forward-looking statements are based on known and unknown risks, assumptions, uncertainties and other factors. Penson’s actual results, performance, or achievements may differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements. Penson undertakes no obligation to publicly update or revise any forward-looking statement.
