M&A World News

Morgan Stanley to buy Canada’s Solium Capital for $900m

(Reuters) – Morgan Stanley said on Monday it would buy Canadian employee stock plans manager Solium Capital for C$1.1 billion ($900 million).

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Morgan Stanley announced Monday it would buy Canadian employee stock plans manager Solium Capital Inc. for $900 million.

Morgan Stanley will be paying $900 million, or C$19.15 ($14.42) per share for the software company, more than a 40% premium over Friday’s closing price of C$13.36 ($10.06).

Solium Capital is a global provider of software-as-a-service for equity administration, financial reporting and compliance. Morgan Stanley said the acquisition will position it to be an industry leader in workplace wealth solutions by marrying a major stock plan administration platform with a wealth management business.

“The acquisition provides Morgan Stanley with broader access to corporate clients and a direct channel to their employees, as well as a greater opportunity to establish and develop relationships with a younger demographic and service this population early in their wealth accumulation years,” said James Gorman, chairman and CEO of Morgan Stanley, in a press release.

The deal is expected to close by the end of June.

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