Morgan Stanley’s $900m Solium deal eyes younger clients
New York — In its biggest acquisition since the financial crisis, Morgan Stanley on Monday announced the $900m purchase of Canada's Solium Capital, a push towards cultivating more young clients.
Solium manages stock plans for about 3,000 companies, including fast-growing new companies led by rising wealth accumulators who often opt for being compensated in equity rather than solely cash.
"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 Morgan Stanley CEO James Gorman.
The deal will combine Morgan Stanley's existing base of corporate clients for whom it administers stock plans with Solium's portfolio of clients.
Solium's cadre of investors could then opt for Morgan Stanley financial advisers "as plan participants build their wealth and their needs become more complex", the companies said in a statement.
The deal follows last week's $66bn merger between regional banks BB&T and SunTrust, the largest bank merger since the 2008 financial crisis.
Shares of Morgan Stanley dipped 0.3% to $40.68 in New York.