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Penson (PNSN) Enters Expanded MSA with Broadridge (BR)

October 13, 2011 4:14 PM EDT
Penson Worldwide, Inc. (Nasdaq: PNSN) announced today that it has entered into an expanded master services agreement (MSA) with Broadridge Financial Solutions, Inc. (NYSE: BR).

In connection with the signing of the amendment agreement to the MSA, the expansion of various services subject to the MSA, and to defray costs incurred by Penson and its affiliates in connection with the conversions to the Broadridge platform, Broadridge made a payment to Penson of $7 million.

Separately, Penson and Broadridge amended and restated the terms of the Seller Note, dated as of June 25, 2010, to provide for payment of interest by Penson at maturity rather than quarterly.

The amendment to the MSA, among other things, expands the scope of business processing services that Penson will outsource to Broadridge and permits the MSA Schedule applicable to Penson’s United Kingdom subsidiary to be terminated without penalty. Further detail on the amendments is provided in the current report on Form 8-K that is being filed by Penson with the Securities and Exchange Commission in connection with this press release and the amendments.


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