Morningstar Buys Ibbotson Associates

The deal is valued at $83 million.
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Morningstar

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agreed to buy Ibbotson Associates, a privately-held firm that specializes in asset allocation services, for $83 million.

The amount is subject to adjustments. Morningstar expects to see about $10 million in cash tax benefits. Ibbotson had $37.2 million in revenue for the fiscal year ended June 30.

Morningstar, based in Chicago, expects to close the transaction in the first quarter.

"Ibbotson's expertise in asset allocation and Morningstar's expertise in security selection and investment research is a powerful combination," said Joe Mansueto, chairman and chief executive officer of Morningstar. "Our companies share many similarities, and we have a firm commitment to helping investors reach their financial goals."

Roger Ibbotson, the founder of Ibbotson Associates, and Mike Henkel, the firm's president, plan to stay with the company.