Close Close

Industry Spotlight > Broker Dealers

With Realpoint Acquisition, Morningstar Enters Structured Finance Space

Your article was successfully shared with the contacts you provided.

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