Morningstar agreed to acquire the remaining 60% stake in Sustainalytics, Amsterdam, in a deal that gives it 100% ownership of the ESG ratings and research firm.
The transaction, which is expected to close in the third quarter, was announced on Morningstar's website Tuesday.
The remaining stake was acquired from seven other shareholders, including Stichting Administratiekantoor Sustainalytics Holding, which owns 14.5% of the company, according to data provided by Morningstar spokeswoman. Among the other sellers was PGGM, the manager of the €238.4 billion ($259 billion) Pensioenfonds Zorg en Welzijn, Zeist, Netherlands, which holds a 9.5% stake.
Morningstar will make an initial €55 million cash payment for the stake. Further cash payments, set to be made in 2021 and 2022, will be based on Sustainalytics' 2020 and 2021 revenue.
Morningstar acquired a 40% stake in Sustainalytics in 2017. A Sustainalytics spokeswoman said that Morningstar made a purchase at the same time as Triodos Bank sold its stake.
Sustainalytics provides environmental, social and governance data on 40,000 companies globally as well as ratings on 20,000 companies and on 172 countries.
"By coming together, Morningstar and Sustainalytics will fast track our ability to put independent, sustainable investing analytics at every level — from a single security through to a portfolio view — in the hands of all investors," Morningstar CEO Kunal Kapoor said Tuesday in a joint news release.
The firm's 650 employees are expected to remain under Sustainalytics leadership team following the acquisition.
