Morningstar buys asset allocation firm
Research house Morningstar has entered into an agreement to acquire specialist asset allocation firm Ibbotson for US$83 million in cash.
Friday, January 13th 2006, 12:43AM
Morningstar plans to offer Ibbotson’s asset allocation software and services through Morningstar’s existing global platform. However, due to anti-trust laws in the United States it isn't commenting at this stage on how the two companies will be combined.
“Ibbotson’s expertise in asset allocation and Morningstar’s expertise in security selection and investment research is a powerful combination,” Morningstar chairman and chief executive Joe Mansueto says.
“Our companies share many similarities, and we have a firm commitment to helping investors reach their financial goals. I have long admired Ibbotson’s work, and this acquisition is a logical move that will further strengthen Morningstar’s institutional and adviser businesses.”
Professor Roger Ibbotson, founder of Ibbotson Associates, and Mike Henkel, president of Ibbotson Associates, plan to stay with the company.
“Ibbotson has developed a tremendous amount of original intellectual capital concerning asset allocation and advice solutions for investors,” Henkel says. “Asset allocation alone is not enough to deliver a complete solution to investors. Morningstar’s data, research, ideas, and global reach give us a chance to collaborate, combine the best of both our organisations, and bring our work to its fullest potential.”
Mansueto says the acquisition fits with several of Morningstar’s growth strategies. We will immediately broaden our reach in the areas of investment consulting, investment management, and managed retirement accounts.
As a combined company, Morningstar and Ibbotson will be able to deliver an even broader array of services to their clients.
Morningstar expects the transaction to be completed in the first quarter of 2006.
| « Salary sacrifice crackdown looming | Sovereign takes regulation bull by the horns » |
Special Offers
Commenting is closed
|
|
Printable version |
|
Email to a friend |
