Morgan Stanley wants Solium to complement its workplace wealth management business, helping it to capture millennials on the plans that have a good chance of getting rich and therefore needing to move to advisor-based relationships. The deal is the bank's largest acquisition since the financial crisis.
Calgary, Canada-based Solium's clients include Instacart, Levi Strauss, Shopify and Stripe, according to the press release.
Solium CEO Marcos Lopez says the company's leadership team is expected to remain in place.
Shares of Morgan Stanley dipped 0.3 percent to $40.68 in opening trading.
"As we've said, we'd look to pursue more", Andy Saperstein, co-head of wealth management at Morgan Stanley, said in an interview.
Solium is a software platform that manages stocks for employees who receive them as part of their pay.
This morning, Solium Capital announced it had entered into a definitive arrangement agreement with Morgan Stanley under which Morgan Stanley, through a wholly owned subsidiary, would acquire SUM, subject to shareholder approval. "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".