November 28, 2011
Bank of New York Buying Penson's Australian Unit
Jason St. Amand READ TIME: 1 MIN.
Bank of New York Mellon Corp. said Monday that it is buying Penson Worldwide Inc.'s Australian division for $33 million as the trust bank seeks overseas growth.
The division Penson is selling, Penson Financial Services Australia Pty Ltd., provides clearing services for trades and processes exchange-traded equities and options. It will be part of Bank of New York Mellon's Pershing LLC unit, which provides clearing services and other products for investors.
"The deal allows us to build upon Bank of New York Mellon's existing presence in Australia, where we see great growth prospects in the investment services business broadly and the broker-dealer and advisor markets specifically," Pershing CEO Brian Shea said in a statement on Monday.
Bank of New York Mellon, based in New York, is the sixth biggest bank in the U.S. The company has been active in Australia for more than 35 years.
Penson, a Dallas company that provides services to financial companies, said it is selling its Australian unit to Bank of New York Mellon as part of a plan to cut costs and debt.
The acquisition is expected to close in the fourth quarter, subject to regulatory approval.
Bank of New York Mellon shares rose 58 cents, or 3.3 percent, to $18.28 in premarket trading. Penson shares were unchanged before the market open. They closed down 6 cents to $1.19 Friday.
