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2/11/2019, 1:22 PM (Source: TeleTrader)
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Morgan Stanley to buy Solium for $828.5M

A firm from Calgary, Alberta, managing employee stock plans agreed to be taken over by Morgan Stanley in the bank's largest purchase since before the global financial crisis. Solium Capital Inc.'s board recommended the offer of C$19.15 per share or C$1.1 billion in total, translating to $828.5 million, according to the announcement published on Monday.

The provider of software-as-a-service (SaaS) has 3,000 corporate clients with one million workers and focuses mostly on the startup scene and the stocks awarded alongside pay. It compares to the New York–based lender's 330 contracts with companies including heavyweights like Microsoft and Ford, having 1.5 million employees. Solium should be delisted from the Toronto Stock Exchange after the transaction, projected to be executed by the end of June.

The deal, which enables a 43% premium from the last closing price, is pending shareholder, regulatory and court approval. The two entities enter the arrangement after Morgan Stanley gave the acquisition target a portfolio of equity compensation accounts to administer in 2016. The team will reportedly be assigned to the financial giant's automated wealth portal. Chief executive James Gorman highlighted the benefits of accessing "a younger demographic."

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