Skip to content

Morningstar Acquires Sustainalytics in $60m Deal, Stock Up 2.71%

Independent investment research company Morningstar has concluded plans to acquire Sustainalytics, a global leader in environmental, social, and governance (ESG) ratings and research. The acquisition announced today, will give Morningstar ownership of the remaining 60% of Sustainalytics stake in addition to the 40% it acquired in 2017.

According to the deal, Morningstar will pay an upfront cash equivalent of €55 million EUR (~$60 million USD) and another cash payment in 2021 and 2022 which will be determined by a multiple of Sustainalytics’ 2020 and 2021 fiscal year revenues.

Sustainalytics has been a recognised analytics company for the past 25 years, providing ESG solutions to investors, banks, and companies all over the world. Its famous security-level ESG Risk Ratings are integrated into institutional investment and is behind the products the company has rolled out over the years.

Morningstar intends to continue investing in the company as well as integrating ESG into Morningstar’s research and solutions for both institutional and retail investors going forward. This is potentially a major addition for Morningstar as it will be absorbing all of Sustainalytics’ 650 employees.

Morningstar stock surges following deal

Following the announcement of the deal, Morningstar stock (NASDAQ: MORN) has gained 2.71% according to data from market information platform Finviz. The future may be brighter for the stock as two companies continue to offer improved analytics services by virtue of this deal.

Morningstar (NASDAQ: MORN) stock up 2.71% following deal. Source: Finviz

The Chief Executive Officer of Sustainalytics, Michael Jantzi speaking on the partnership said it will enable the two companies to bring ESG products and services to the global investment community and companies in a greater measure as Morningstar strongly believes in the company’s mission.

“Sustainalytics welcomes the opportunity to join the Morningstar family. Our collaboration over the past several years has helped to extend the understanding and use of ESG insights and strategies to a multitude of investors, advisors, asset owners and managers across the globe,” he said.

Chief Executive Officer of Morningstar, Kunal Kapoor also speaking said Morningstar and Sustainalytics coming together will ensure better service delivery for investors in terms of analysis and data-based investment decision making. In his words, he said:

“By coming together, Morningstar and Sustainalytics will fast track our ability to put independent, sustainable investing analytics at every level – from a single security through to a portfolio view – in the hands of all investors.”

The company will announce its Q1 2020 financial results on April 29th, after the close of the market. As of December 31, 2019, it had $233 billion in assets under advisement and management.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Services

IMPORTANT NOTICE

Finbold is a news and information website. This Site may contain sponsored content, advertisements, and third-party materials, for which Finbold expressly disclaims any liability.

RISK WARNING: Cryptocurrencies are high-risk investments and you should not expect to be protected if something goes wrong. Don’t invest unless you’re prepared to lose all the money you invest. (Click here to learn more about cryptocurrency risks.)

By accessing this Site, you acknowledge that you understand these risks and that Finbold bears no responsibility for any losses, damages, or consequences resulting from your use of the Site or reliance on its content. Click here to learn more.