Morningstar has announced its plans to acquire full ownership of Sustainalytics, a Dutch-based provider specializing in environmental, social, and governance (ESG) ratings and research.
Currently, Morningstar holds a 40% stake in Sustainalytics, a position it first established in 2017. The firm will be purchasing the remaining 60% of shares for an initial payment of EUR 55 million, along with an earn-out contingent on revenue generated in fiscal years 2020 and 2021. This acquisition positions Sustainalytics’ total enterprise value at approximately EUR 170 million.
Sustainalytics is renowned for its security-level ESG Risk Ratings, which are integral to institutional investment strategies and serve as the foundation for various indices and sustainable investment products. The company provides data on 40,000 firms and ratings for 20,000 companies across 172 countries, supported by a global workforce of 650 employees across 16 locations.
Kunal Kapoor, CEO of Morningstar, stated, “The integration of Morningstar and Sustainalytics will accelerate our mission to deliver independent, sustainable investing analytics to all investors, from individual securities to comprehensive portfolio analyses.”