Morgan Stanley has entered into a definitive agreement to acquire stock plan administration provider Solium Capital Inc.
Solium has 3,000 stock plan clients, with 1 million participants, while Morgan Stanley has 320 stock plan clients, with 1.5 million participants, of which a quarter are in the Fortune 500, according to a press release.
Morgan Stanley had entered into a partnership with Solium in 2016 to administer equity compensation plans for Morgan Stanley’s corporate clients and their employees.
Marcos Lopez, CEO of Solium, will remain with the company and be based in Calgary, according to the announcement.
Morgan Stanley will acquire all of the issued and outstanding common shares of Solium for CAD 19.15 per share in cash, representing a total equity value of approximately CAD 1.1 billion ($0.9 billion). The transaction is expected to have a minimal impact on the firm’s earnings and capital ratios.