Morgan Stanley, a leading global financial services provider, in a statement on Monday, Feb. 11th, 2019, announced that it’ll be acquiring Solium Capital, a cloud-enabled services provider for global equity administration, financial reporting and compliance, for $900 million.
According to James Gorman, chairman, and CEO, Morgan Stanley, with this acquisition, Morgan Stanley can expand its corporate client access, provide a direct channel to its employees, and pave way for greater opportunities to establish and develop cordial relationships with younger generations to service them early in their wealth accumulation years.
Solium, with its 3,000 stock plan clients and 1 million participants, include companies like Instacart, Levi Strauss, Shopify and Stripe, while Morgan Stanley has 320 stock plan clients and 1.5 million participants, one-fourth of which are in the Fortune 500 list.
Morgan Stanley believes that this acquisition will pave way for new business opportunities in its aim to become a leading provider of stock plan administration services and workplace wealth. Both firms are well versed with each other, back in 2016 both Morgan Stanley and Solium entered a partnership agreement to administer equity compensation plans for Morgan Stanley’s corporate clients and their employees.
The acquisition deal is expected to close in Q2 2019, subject to customary conditions which include courts, Solium shareholders, and regulatory approvals. In another set of events, last month Bank of America (BoA) and Morgan Stanley were planning to come up with a rival stock exchange to compete with the Nasdaq and Intercontinental Exchange (ICE).