Morningstar to Acquire Equity Research and Data Business of C.P.M.S. Computerized Portfolio Management Services, Leading Provider to Canadian Investment Community



    CHICAGO, April 24 /CNW/ -- Morningstar Research Inc., the Canadian
subsidiary of Morningstar, Inc. (Nasdaq:   MORN), has entered into a definitive
agreement to acquire the equity research and data business of C.P.M.S.
Computerized Portfolio Management Services Inc., a privately owned independent
equity research and data firm in Toronto, for C$16.1 million. The companies
expect to complete the transaction in the second quarter, subject to customary
closing conditions.
    

    
    "C.P.M.S. is a highly regarded firm with a long history of providing
superior equity data and research to the Canadian investment community," said
Scott Mackenzie, president and chief executive officer of Morningstar Research
Inc. "Most investment managers in Canada use C.P.M.S.' equity research and
data, and Morningstar is a leading provider of fund research and data in the
United States and Canada. By acquiring this business, we'll be able to expand
our global investment data and research offerings."
    

    
    Founded in 1984, C.P.M.S. tracks fundamental equity data for
approximately 4,000 securities in the United States and Canada as well as
tracks and provides brokerage earnings estimates for Canadian equities.
C.P.M.S.' flagship software platform, the Equity Market Service, fully
integrates fundamental and expected earnings data to generate a wide range of
applications such as stock, industry, and market analysis; construction of
long and short strategies with its proprietary ranking and screening system;
stock and portfolio sensitivity analysis; and portfolio analytics. Its
Backtest service incorporates real-time fundamental and expected earnings data
for developing and back-testing investment strategies and style analysis, as
well as developing custom benchmarks. The Backtest service also permits
industry and market behavior analysis.
    

    
    C.P.M.S.' equity research and data business also includes eight distinct
quantitatively driven model portfolios covering value, growth, income
generating, momentum, and short-selling investment styles for the U.S. and
Canadian equity markets.
    

    
    Rick Przybylski, founder, president and chief executive officer of
C.P.M.S., said, "As part of our long-term goals and objectives, we've always
looked to expand our presence outside of Canada. Morningstar's global
fundamental database, distribution network, and reputation will provide
opportunities to enhance our equity research and data business and expand our
client base."
    

    
    C.P.M.S.' equity research and data business has more than 500 clients
throughout the United States and Canada, including institutional money
managers, pension funds, endowment managers, and investment advisors. It has
about 40 employees in Toronto.
    

    About Morningstar, Inc.
    
    Morningstar, Inc. is a leading provider of independent investment
research in North America, Europe, Australia, and Asia. The company offers an
extensive line of Internet, software, and print-based products and services
for individuals, financial advisors, and institutions. Morningstar provides
data on more than 300,000 investment offerings, including stocks, mutual
funds, and similar vehicles, along with real-time global market data on more
than 4 million equities, indexes, futures, options, commodities, and precious
metals, in addition to foreign exchange and Treasury markets. The company has
operations in 19 countries and minority ownership positions in companies based
in three other countries.
    

    Caution Concerning Forward-Looking Statements
    
    This press release contains forward-looking statements as that term is
used in the Private Securities Litigation Reform Act of 1995. These statements
are based on our current expectations about future events or future financial
performance. Forward-looking statements by their nature address matters that
are, to different degrees, uncertain, and often contain words such as "may,"
"could," "expect," "intend," "plan," "seek," "anticipate," "believe,"
"estimate," "predict," "potential," or "continue." These statements involve
known and unknown risks and uncertainties that may cause the events we
discussed not to occur or to differ significantly from what we expected. For
us, these risks and uncertainties include, among others, general industry
conditions and competition, including the global financial crisis that began
in 2007; the impact of market volatility on revenue from asset-based fees;
damage to our reputation resulting from claims made about possible conflicts
of interest; liability for any losses that result from an actual or claimed
breach of our fiduciary duties; financial services industry consolidation; a
prolonged outage of our database and network facilities; challenges faced by
our non-U.S. operations; and the availability of free or low-cost investment
information. A more complete description of these risks and uncertainties can
be found in our filings with the Securities and Exchange Commission, including
our Annual Report on Form 10-K for the year ended December 31, 2008. If any of
these risks and uncertainties materialize, our actual future results may vary
significantly from what we expected. We do not undertake to update our
forward-looking statements as a result of new information or future events.
    

    (C)2009 Morningstar Inc.  All rights reserved.

    

    
    Media Contacts:
    Margaret Kirch Cohen, 312-696-6383, margaret.cohen@morningstar.com
    

    
    Nadine Youssef, 312-696-6601, nadine.youssef@morningstar.com




    




For further information:

For further information: Margaret Kirch Cohen, +1-312-696-6383,
margaret.cohen@morningstar.com, or Nadine Youssef, +1-312-696-6601,
nadine.youssef@morningstar.com, both of Morningstar


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