Morgan Stanley agreed to buy Solium Capital Inc. (SUM.TO), a provider of stock-plan administration services for corporations, in a deal valued at about US$900 million.
The firm will pay $19.15 a share in cash, according to a statement Monday, or about 43 per cent higher than Solium’s closing price on Friday.
Morgan Stanley will add Calgary-based Solium’s 3,000 stock-plan clients and 1 million participants to its rival offering, which has 320 clients and 1.5 million participants. About a quarter of Morgan Stanley’s clients are in the Fortune 500, according to the statement.
“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,” Chief Executive Officer James Gorman said in the statement.
The Wall Street bank entered into a partnership with Solium in 2016 to administer equity-compensation plans for its corporate clients and their employees. The deal announced Monday won’t affect Morgan Stanley’s buyback plans, and is expected to be completed in the second quarter, according to the statement.