Morgan Stanley announced on Monday that it is buying Canadian employee stock plans manager Solium Capital (TSX:SUM) for $1.1 billion.
The deal will allow Morgan Stanley to attract young salaried workers, who after they sign up on Solium to manage their stock options, can eventually choose the bank’s investing and virtual adviser channels, as they build their wealth, or when their investing needs arise.
The bank will pay $19.15 per share for Solium, a 43% premium over its Friday closing price of $13.36. The deal is expected to close by June 30.
Calgary-based Solium provides stock plans for over 3,000 companies, which include Instacart, Levi Strauss, Shopify, Bombardier and Dropbox. The transaction is expected to have minimal impact on Morgan Stanley’s earnings and capital ratios, and the bank does not expect any changes to its share repurchase programs.
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