Calgary-based Solium Capital Inc., a leading global provider of software-as-a-service (SaaS) for equity administration, financial reporting and compliance, is being sold for $1.1 billion to American-based Morgan Stanley, a leading global financial services firm providing investment banking, securities, investment management and wealth management services.
A news release on Monday stated that Morgan Stanley will acquire all of the issued and outstanding common shares of Solium, subject to the approval of the Solium shareholders.
“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,” said James Gorman, chairman and CEO of Morgan Stanley, in a statement.
Morgan Stanley said Solium’s 3,000 stock plan clients, with one million participants, include Instacart, Levi Strauss, Shopify and Stripe, and a range of fast-growing private companies, as well as newly public companies.
“Morgan Stanley has 320 stock plan clients, with 1.5 million participants, of which a quarter are in the Fortune 500. This combination will create a leading provider of stock plan administration services and Workplace Wealth. Solium has a strong business-to-business salesforce, an industry-leading cloud-based service platform and is a leader in private company equity administration, which will complement and strengthen Morgan Stanley’s offering,” it said.
“Morgan Stanley has been building a comprehensive suite of digital tools that will support expansion within the Workplace Wealth marketplace. Morgan Stanley entered into a partnership with Solium in 2016 to administer equity compensation plans for Morgan Stanley’s corporate clients and their employees. This is expected to enhance Morgan Stanley’s client acquisition efforts in a manner that complements the financial adviser channel, which constitutes the core of Morgan Stanley’s strategy.”
Marcos Lopez, CEO of Solium, will remain with the company and be based in Calgary.
“We view this acquisition as part of our broader, longer-term strategy, leveraging our digital capabilities in the workplace,” said Andy Saperstein, co-head of wealth management at Morgan Stanley. “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 counselling and industry leading advice to their employees.”
– Mario Toneguzzi for Calgary’s Business