Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, March 1, 2019

Article Excerpt

SOLIUM CAPITAL, $19.13, symbol SUM on Toronto, is a Calgary-based company that provides software and support services to more than 3,000 clients in more than 100 countries. It administers stock-based compensation for their employees (including stock options, share-purchase plans and other grant-based incentive programs). It also offers financial reporting and compliance services. Solium provides its products as “on-demand software” or “software as a service.” This is a cloud computing model in which the software and associated data are stored on remote, secure servers. The company generates 66% of its annual revenue from recurring subscriptions and 30% from re-occurring transactions throughout the year such as foreign exchange services and share transactions. The remaining 4% of revenue is from one-time transaction fees for getting new clients onto Solium’s platform. On February 11, 2019, the company announced the findings of a special committee formed by its board of directors to evaluate a takeover offer by Morgan Stanley (symbol MS on New York). It has bid…