Bank of New York Mellon Corp. agreed to acquire Penson Worldwide Inc.'s Australian clearing-services unit.
The deal, valued at about $33 million, is expected to expand the footprint of BNY Mellon's Pershing business in that country.
"Australia is strategically important to BNY Mellon in Asia-Pacific, both to continue our local franchise growth and to support our clients' objectives," said Steve Lackey, chairman of Asia-Pacific, BNY Mellon.
The deal is expected to close in the current quarter. Penson expects to post a gain of about US$14 million from the sale of its Pension Financial Services Australia Pty. Ltd. business. The sale is part of a series of moves by the brokerage and clearing firm to improve its balance sheet and profitability.
In August, Penson disclosed plans to sell assets--including the Australian business--as well as streamline operations and look for other areas to reduce costs after the firm reported a $30.2 million loss for the second quarter.
BNY last month reported that its third-quarter profit rose 8.7% as the trust bank recorded higher fee revenue, benefiting from a trend among financial companies looking to trim costs by outsourcing more activity.
BNY Mellon shares were up 3.3% at $18.28 in recent premarket trading. Penson shares closed Friday at $1.19 and were inactive premarket. The stock is down by 76% this year.
