US-based financial services provider Morgan Stanley has agreed to acquire Canada-based software-as-a-service (SaaS) company Solium Capital in a deal valued at around CAD$1.1bn ($900m).
Image: Morgan Stanley headquarters. Photo: courtesy of Morgan Stanley.
Solium offers cloud-enabled services for global equity administration, financial reporting and compliance.
The company has offices in the US, Canada, the UK, Europe and Australia. Its SaaS technology is said to power share plan administration and equity transactions for over 3,000 corporate clients with employee participants in more than 100 countries.
Morgan Stanley claims that the acquired business will enable it to become industry leader in workplace wealth solutions and combine major stock plan administration platform with leading wealth management business.
Solium has 3,000 stock plan clients, with one million participants, such as Instacart, Levi Strauss, Shopify and Stripe, as well as fast growing private companies and new public companies. Morgan Stanley has 320 stock plan clients, with 1.5 million participants.
Morgan Stanley chairman and CEO James Gorman said: “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.”
Subject to court, Solium shareholder and regulatory approvals, and other customary closing conditions, the deal is expected to be completed in the second quarter of 2019.
Morgan Stanley wealth management co-head Andy Saperstein said: “By combining stock plan administration, 401(k), other forms of deferred compensation, employee Financial Wellness education and our core Goals-Based Planning technology, we plan to create an integrated ‘Morgan Stanley Wealth Portal,’ which will offer employers the opportunity to deliver tailored financial counseling and industry leading advice to their employees.”
In 2016, Morgan Stanley collaborated with Solium to provide equity compensation plans for its corporate clients and their employees.
Morgan Stanley offers investment banking, securities, investment management and wealth management services to its customers.
With offices in over 41 countries, the company has clients across the globe, including corporations, governments, institutions and individuals.