Morningstar to Acquire Ratings Agency DBRS for $669 Mln

Morningstar (MORN) said Wednesday it has agreed to acquire credit ratings agency DBRS for $669 million.

The addition of DBRS to Morningstar Credit Ratings’ US business is expected to expand its global asset class coverage and provide an enhanced platform for providing investors with fixed-income analysis and research, Morningstar said.

“DBRS and Morningstar share research-centric cultures committed to rigor and independence. Together, we believe we can elevate the industry with the world’s first fintech ratings agency backed by state-of-the-art models, modern technology, and expert research teams that issuers and investors can count on to deliver transparent and independent ratings,” Morningstar Chief Executive Officer Kunal Kapoor said in a filing,

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DBRS reported $167 million in revenue for the fiscal year ended Nov. 30, 2018.

Morningstar will fund the acquisition with a mix of cash and debt, which will include the placement of a new credit facility at closing. The transaction is expected to be accretive to net income per share in the first fiscal year after completion, which is slated for Q3, subject to regulatory approval and customary closing conditions.