Morgan Stanley has made its biggest deal since the financial crisis

Key Highlights :

The Wall Street bank says it will pay $19.15 Canadian per share for Alberta-based Solium, adding it expects the transaction to close in the second quarter. Morgan Stanley CEO James Gorman told The Wall Street Journal he’d like to “do more” acquisitions. “Last year was the first time we felt comfortable that we could even consider” acquisitions.

On Monday, the financial firm Morgan Stanley has announced that it is ready to buy Solium Capital, a Canadian company that prepares the plans for startups stocks, for a whopping price of 9 million dollars. The Wall Street bank has said that it will pay 19.15 dollars per Canadian share for Calgary based Solium, adding that it would expect the transaction to close in the second quarter of the year. The Ultimate goal of the firm will obviously be two-fold, which is to run a profitable stock plan administration business and expand its distribution to the millions of MS clients and to deliver Microsoft’s world-class wealth management services into existing and future Solium stock plan clients. Glenn Schorr, the ISI analyst or Evercore, has said in a note to clients that, “Solium will add even more to the stability of the wealth mgmt. division as it’s a subscription model with an 11 percent compound annual growth rate revenue of over the last five years.”

The current deal is one of the biggest for Morgan Stanley firm since the financial crisis, and this comes just after three days later the largest bank merger in 10 years was announced. BB&T has approved and agreed to buy SunTrust Banks for more than 28 billion.

James Gorman, honorable chief executive officer of Morgan Stanley, told that “The Wall Street Journal he would like to make more acquisitions, Last year was the first time we felt comfortable that we could even consider the acquisitions.”

Leave a Reply