Morningstar agreed to acquire the remaining 80% of private markets data provider PitchBook Data for $180 million in cash, said Mary Kenefake, Morningstar spokeswoman, in an e-mail.
PitchBook will become a wholly owned subsidiary of Morningstar. PitchBook provides data, research and technology on venture capital, private equity and other alternative investment markets, as well as on mergers and acquisitions for approximately 1,800 clients worldwide.
The purchase price is based on a total company value of $225 million. PitchBook had $31.1 million in revenue for the trailing 12 months ended June 30. Morningstar already owned 20% of the firm and will fund purchase of the remainder by expanding its existing revolving credit facility.
Morningstar originally invested $1.2 million in PitchBook as a Series A preferred investor in September 2009 and another $10 million as a Series B preferred investor in January. The other 80% of PitchBook is owned by several angel investors, employees and John Gabbert, PitchBook's founder and CEO, said Abigail Havern, PitchBook communications manager, in an email.
PitchBook will maintain its brand and identity, and will continue to be led by Mr. Gabbert.
The deal is expected to close in the fourth quarter, subject to customary closing conditions.