Morningstar buys research firm Realpoint for $52 million

(Crain's) — Morningstar Inc. has agreed to acquire credit research company Realpoint LLC for $52 million, including $42 million in cash and $10 million in restricted stock.

Morningstar plans to complete the purchase in the next few months, the Chicago-based investment research company said in a news release.

Realpoint, based in Horsham, Pa., provides structured finance ratings, research and data to about 225 institutional investors, including money managers who invest in commercial mortgage-backed securities. Combining with Morningstar will allow Realpoint to expand globally, CEO Robert Dobilas said.

Eventually, Realpoint will be rebranded under the Morningstar name.

“We believe there’s strong demand for unbiased ratings and research in the unstructured credit market, and we think the time is ripe to bring more competition to this market,” Morningstar CEO Joe Mansueto said in the release.

Morningstar entered the credit ratings business in December and now has ratings on 150 large U.S. companies, the company said.