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Industry Spotlight > Broker Dealers

With Realpoint Acquisition, Morningstar Enters Structured Finance Space

By John Sullivan

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Morningstar, based in Chicago, is well on the road to conglomerate. The company announced yet another acquisition, closing on the purchase of Realpoint, LLC, a Nationally Recognized Statistical Ratings Organization (NRSRO) that specializes in structured finance.

The purchase price consists of approximately $42 million in cash, subject to post-closing adjustments, and approximately 199,000 shares of restricted stock valued at approximately $10 million at the time the acquisition was announced March 19, 2010.

Realpoint had revenue of approximately $12 million in 2009.

According to the company, Realpoint currently offers securities ratings, research, surveillance services and data to help institutional investors identify credit risk in commercial mortgage-backed securities. More than 225 institutional investment firms subscribe to Realpoint’s trusted ratings and analytics, including the majority of investment managers who invest in commercial mortgage-backed securities.

Realpoint has about 40 employees in Horsham, Pennsylvania, a suburb of Philadelphia. It will become a business unit within Morningstar’s Equity and Credit Research business. Over time, the company will be rebranded under Morningstar.

Read a story about Morningstar’s purchase of Realpoint from the archives of InvestmentAdvisor.com.

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