Morningstar Inc., an independent investment research firm, has entered into a definitive agreement to acquire Realpoint LLC, a Nationally Recognized Statistical Ratings Organization that specializes in structured finance.
The purchase price is $52 million, subject to post-closing adjustments, and includes approximately $42 million in cash and $10 million in restricted stock. Realpoint had revenue of approximately $12 million in 2009, according to Morningstar, which expects to complete the transaction in the next few months.
‘We believe there's strong demand for unbiased ratings and research in the structured credit market, and we think the time is ripe to bring more competition to this market," says Joe Mansueto, chairman and CEO of Morningstar.
Realpoint currently offers securities ratings, research, surveillance services and data to help institutional investors identify credit risk in commercial mortgage-backed securities.
On Thursday, Realpoint announced that it was selected to rate its second new-issue securitization, the JP Morgan Chase Commercial Mortgage Securities Corp. FREMF 2010 K-6 Mortgage Trust.