Morningstar takes 100% control of Sustainalytics in €170m total deal

As of April 21, 2020, Morningstar, leading provider of independent investment research with headquarters in Chicago, announced it has reached an agreement to acquire Sustainalytics, ESG Ratings provider with headquarters in Amsterdam. Morningstar currently owns an approximate 40% ownership stake in Sustainalytics, first acquired in 2017, and will purchase the remaining approximate 60% of Sustainalytics shares upon closing of the transaction, valuing Sustainalytics at €170m ($184m).

According to Morningstar’s press release of April 21, 2020: “the transaction consideration includes a cash payment at closing of approximately EUR 55 million (subject to certain potential adjustments) and additional cash payments in 2021 and 2022 based on a multiple of Sustainalytics’ 2020 and 2021 fiscal year revenues. Based on the upfront consideration, Morningstar estimates the enterprise value of Sustainalytics to be EUR 170 million. The closing of the transaction is subject to customary closing conditions and is expected to occur early in the third quarter of 2020”.

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