Published: Wed, February 13, 2019
Finance | By Loren Pratt

Morgan Stanley acquring Calgary-based Solium Capital in $1.1B deal

Morgan Stanley acquring Calgary-based Solium Capital in $1.1B deal

Morgan Stanley said on Monday it would buy Canadian employee stock plans manager Solium Capital for C$1.1 billion ($900 million). With this acquisition, Morgan Stanley is positioned to be an industry leader in Workplace Wealth Solutions, bringing together a major stock plan administration platform with a leading Wealth Management business.

Morgan Stanley already has 320 share scheme clients that collectively manage schemes on behalf of 1.5 million employees, although its focus is on Fortune 500 companies. Solium also boasts a strong business-to-business salesforce and is a top provider in private company equity administration, all of which is expected to bolster Morgan Stanley's existing offering, the companies say. As plan participants build their wealth, and their needs become more complex, there is a natural transition to an Advisor-based relationship.

Marcos Lopez, CEO of Solium, will remain with the company and be based in Calgary.

Shares of Morgan Stanley rose 0.9 per cent to US$41.17 in early trading at 9:07 a.m.

This morning, Solium Capital announced it had entered into a definitive arrangement agreement with Morgan Stanley under which Morgan Stanley, through a wholly owned subsidiary, would acquire SUM, subject to shareholder approval.

The deal will combine Morgan Stanley's existing base of corporate clients for whom it administers stock plans with Solium's portfolio of clients.

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