Morningstar, Inc., (Nasdaq: MORN) a leading provider of independent investment research, and Ibbotson Associates, a privately held firm that specializes in asset allocation services, have entered into a definitive agreement for Morningstar to acquire Ibbotson for $83 million in cash, subject to adjustments for working capital and certain make-whole payments. In addition, Morningstar anticipates realizing approximately $10 million in cash tax benefits related to payment for the cancellation of Ibbotson's stock options. Ibbotson had $37.2 million in revenue for its fiscal year ending June 30, 2005.
INFO SOURCES
Morningstar, Inc., (Nasdaq: MORN)
FIRMS
Ibbotson Associates, founded by Professor Roger Ibbotson in 1977, is a leading authority on asset allocation, providing products and services to help investment professionals obtain, manage, and retain assets. The company's business lines include investment consulting and research; planning and analysis software; investment advice; educational and marketing services; and a widely used line of NASD-reviewed presentation materials. Ibbotson has approximately 150 employees and offices in Chicago, New York, and Tokyo.
Morningstar, Inc. is a leading provider of independent investment research in the United States and in major international markets. The company offers an extensive line of Internet, software, and print-based products and services for individuals, financial advisors, and institutional clients. Morningstar provides data on more than 125,000 investment offerings, including stocks, mutual funds, and similar vehicles. The company has operations in 16 countries.
ADVISORS
Greenhill & Co. acted as the exclusive financial advisor to Ibbotson on this transaction. Vedder, Price, Kaufman & Kammholz P.C. acted as legal counsel to Ibbotson on this transaction. Winston & Strawn LLP acted as legal counsel to Morningstar.
LINKED TO
Morningstar, Inc. is Linked to:
2005 IPOs; SOFTBANK Finance Corporation, a wholly owned subsidiary of SOFTBANK Corp.
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