Morningstar acquires Moorgate Benchmarks, expanding its European presence

Morningstar acquired Moorgate Benchmarks in a move that underscores its expansion into Europe, the firm said Wednesday.

Moorgate Benchmarks, a privately held London-based global provider of index design, calculation and administration, started in 2019 with ETFS Capital as its sole external investor. It now becomes a wholly owned subsidiary of Morningstar, with the executive team, employees in the U.K. and Germany and technology and intellectual property now part of Morningstar Indexes.

Financial terms were not disclosed. The deal closed Sept. 3.

"The index industry today needs disruption, with a number of entrenched players who aren't providing enough value and innovation to investors for the fees they charge. Moorgate Benchmarks' advanced technology, index calculation process, and strong reputation in Europe will help us address this issue head on," Morningstar Indexes President Ron Bundy said in Wednesday's release.

Moorgate Benchmarks' capabilities "will help accelerate our goal of becoming a leading global index provider by providing more value to the end investor," he said.

The two firms also share a common mission and culture as "challenger brands" doing things differently in the index industry, he said.

Moorgate Benchmarks CEO Tobias Sproehnle will also serve as head of Morningstar Indexes in Europe, reporting to Mr. Bundy.

Morningstar, headquartered in Chicago, provides independent investment research in 29 countries in North America, Europe, Australia and Asia and investment management services through subsidiaries with $251 billion in assets under advisement and management, according to the release.