Morgan Stanley acquires Solium Capital in $900m deal

Solium Capital, a startup offering global equity administration, financial reporting and compliance, has been acquired by Morgan Stanley in a deal worth around $900m.

Through this deal, Morgan Stanley is hoping to cement its position in the workplace wealth solutions space by collating major stock plan administration services with its own wealth management offerings, it said.

Solium supports share plan administration and equity transactions for over 3,000 corporate clients with employee participants across 100 countries. Through the platform, users can make more informed decisions and boost engagement of employees. Its offerings include expense accounting, global compliance, form filling, plan admin, and scenario testing.

Combining Solium’s 3,000 stock plan clients with Morgan Stanley’s 320 clients, will help to establish a strong provider of stock plan administration services and Workplace Wealth.

Morgan Stanley chairman and CEO James Gorman said, “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.”

Following the close of the deal, current Solium CEO Marcos Lopez will remain in this role.

This acquisition has come as Morgan Stanley has looked to create digital tools which will help the growth of its Workplace Wealth marketplace.

Morgan Stanley co-head of Wealth Management Andy Saperstein said, “We view this acquisition as part of our broader, longer-term strategy, leveraging our digital capabilities in the workplace.

“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.”

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