Morgan Stanley Purchases Solium Capital

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Morgan Stanley has just announced that they will be purchasing Solium Capital Inc. for a reported $900 million. At the close of the market on Friday, Morgan Stanley was paying a premium of 43 percent more than Solium’s closing price. This was Morgan Stanley’s biggest deal since 2008.

Depending on regulatory approvals, analysts expect the deal to close by the second quarter of 2019.

Although the significant premium may raise the brows of financial analysts, Morgan Stanley is confident that this acquisition makes strategic sense. However, at the end of Monday, Morgan Stanley’s shares had fallen by about 0.7 percent.

Solium Capital is one of the top providers of stock-plan administration services for large corporations, and Morgan Stanley had frequently expressed interested in merging the two companies. Over the years, Morgan Stanley has worked to develop a comprehensive, innovative suite of digital tools that will reinvent Workplace Wealth management and purchasing Solium was the next step in deploying these offerings.