Bloomberg News

Penson Buys First Capitol Group for $10.8 Million

November 30, 2007

Penson Worldwide Inc. (PNSN:US), the securities-clearing firm that went public last year, paid $10.8 million to acquire First Capitol Group LLC to improve its futures business.

The purchase price includes $8.6 million in cash and $2.2 million in stock, Dallas-based Penson said in a statement. The acquisition initially will be non-material to Penson, the statement said.

First Capitol had $12 million in sales in the last 12 months, is profitable, and has unique brands, Penson Chief Executive Officer Philip Pendergraft said in the statement. First Capitol founders John D. Streich and Michelle Streich have signed three-year contracts to continue, Penson's statement said.

Shares of Penson rose 29 cents to $15.33 at 4 p.m. in Nasdaq Stock Market trading and have fallen 44 percent this year. First Capitol is based in Platteville, Wisconsin.

To contact the reporter on this story: Peter J. Brennan in Los Angeles at

To contact the editor responsible for this story: Joanne Norton at

The Good Business Issue
blog comments powered by Disqus