Morningstar is buying Ibbotson Associates for $83 million in cash. Morningstar expects to get $10 million in cash tax benefits as a result of the cancellation of Ibbotson stock options, so in reality, the fund tracker is buying Ibbotson for $73 million.
"Ibbotson's expertise in asset allocation and Morningstar's expertise in security selection and investment research is a powerful combination," said Joe Mansueto, chairman and CEO of Morningstar, in a statement. "Our companies share many similarities, and we have a firm commitment to helping investors reach their financial goals. I have long admired Ibbotson's work, and this acquisition is a logical move that will further strengthen Morningstar's institutional and adviser business."