Morgan Stanley to buy Canadian employee stock manager Solium for 11 billion

first_img Twitter Join the conversation → Bloomberg News Sonali Basak February 11, 20199:13 AM EST Filed under News FP Street Comment Facebook Share this storyMorgan Stanley to buy Canadian employee stock manager Solium for $1.1 billion — a 43% premium Tumblr Pinterest Google+ LinkedIn 0 Comments More What you need to know about passing the family cottage to the next generationcenter_img Email Morgan Stanley agreed to buy Solium Capital Inc. in a bid to add younger clients and tech startups to its stock-plan administration business.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. The agreement values Solium at about $1.1 billion (US$900 million).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. Solium’s clients include such startups as Stripe Inc., Instacart Inc. and Shopify Inc., giving Morgan Stanley’s investment bankers a chance to pitch those firms capital-raising ideas, while its advisers court tech workers as they start to accumulate wealth. It’s official: Wall Street just made $100 billion for the first time ever World’s biggest money manager expects Bank of Canada to hit the brakes in 2019 Men on Wall Street are so spooked by the #MeToo movement they’re avoiding women at all costs The large premium Morgan Stanley agreed to pay “might raise a brow, but we think this makes significant strategic sense,” analysts at Evercore ISI said in a note, adding that the link-up “provides a real path towards the organic growth and next generation of clients that many investors have been questioning.”Shares of Morgan Stanley rose 0.9 per cent to US$41.17 in early trading at 9:07 a.m.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.“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.Bloomberg.com ← Previous Next → Reddit Morgan Stanley headquarters in New York is seen on March 1, 2017. U.S. bank Morgan Stanley has signed a deal to buy Solium Capital Inc. in a deal valued at about $1.1 billion.Mark Lennihan/AP/The Canadian Press Morgan Stanley to buy Canadian employee stock manager Solium for $1.1 billion — a 43% premium Morgan Stanley wants to add younger clients and tech startups to its stock-plan administration business Sponsored By: Featured Stories advertisementlast_img read more