Morgan Stanley (MS) announced Monday it would buy Canadian employee stock plans manager Solium Capital Inc. for $900 million.
Morgan Stanley will be paying $900 million, or C$19.15 ($14.42) per share for the software company, more than a 40% premium over Friday's closing price of C$13.36 ($10.06).
Solium Capital is a global provider of software-as-a-service for equity administration, financial reporting and compliance. Morgan Stanley said the acquisition will position it to be an industry leader in workplace wealth solutions by marrying a major stock plan administration platform with a wealth management business.
"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 press release.
The deal is expected to close by the end of June. Morgan Stanley closed 1.5% lower at $40.21 in Monday's trading.