EX-99.1
2
a06-6084_1ex99d1.htm
EXHIBIT 99.1
Exhibit 99.1
Media
Contact:
Margaret Kirch Cohen
312-696-6383
margaret.cohen@morningstar.com
Investors: Please submit
questions to investors@morningstar.com or by fax to 312-696-6009.
FOR
IMMEDIATE RELEASE
Morningstar, Inc.
Completes Acquisition of Ibbotson Associates
CHICAGO, March 1,
2006 - Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent
investment research, today announced it has completed its previously announced
acquisition of Ibbotson Associates, a leading provider of asset allocation
research and services, for approximately $83 million in cash, subject to
adjustments for working capital and other items. In addition, Morningstar
anticipates realizing approximately $10 million in cash tax benefits in 2006
related to payment for the cancellation of Ibbotson's stock options.
Morningstar does not expect charges related to the acquisition to have a
significant impact on net income or earnings per share.
Ibbotson Associates was
founded by Professor Roger Ibbotson in 1977. The company's business lines
include investment advice; investment consulting and research; planning and
analysis software; educational and marketing services; and a widely used line
of NASD-reviewed presentation materials.
Joe Mansueto, chairman
and chief executive officer of Morningstar, said, "Many leading firms turn to
Ibbotson because it is a leading authority on asset allocation. Similarly, our
clients rely on Morningstar because of our expertise in security selection and
investment research. By combining Ibbotson's top-down allocation expertise with
our bottom-up, fundamental research, we will be able to deliver an even
stronger array of services to investors".
Ibbotson is based in
Chicago and employs approximately 150 people. Morningstar plans to retain the
majority of Ibbotson's employees.
1
Roger Ibbotson will serve
in an advisory role at Morningstar, reporting to Mansueto. Mike Henkel,
president of Ibbotson Associates, will continue to lead Ibbotson's retirement
advice and investment consulting businesses, reporting to Tao Huang, chief
operating officer of Morningstar. As a wholly owned subsidiary of Morningstar, Inc.,
Ibbotson Associates will become a new unit of Morningstar's Institutional
business segment.
Morningstar Associates,
LLC, also offers retirement advice and investment consulting services. Because
Ibbotson Associates and Morningstar Associates use different methodologies and
platforms, Morningstar will operate the two businesses separately to ensure
continuity for current clients. Clients may choose to keep their current
service or select from a broader range of offerings under the combined
organization.
Ibbotson's EnCorr
software product will be integrated into Morningstar's Data Services business,
which is part of its Institutional segment. Ibbotson's Portfolio
Strategist®, iPlan™, Components, Presentation Materials, and Training
businesses will be integrated into Morningstar's Advisor business. Ibbotson's
publications business, including the
Stocks,
Bonds, Bills and Inflation® Yearbooks
, will be integrated into
Morningstar's Individual segment.
Ibbotson had $37.2
million in revenue for its fiscal year ended June 30, 2005. Morningstar
will file a Report on Form 8-K with the Securities and Exchange Commission
by May 17 that includes pro forma historical financial statements for the
combined company, as well as stand-alone historical financial statements for
Ibbotson.
About
Morningstar, Inc.
Morningstar, Inc. is
a leading provider of independent investment research in the United States and
in major international markets. 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
approximately 145,000 investment offerings, including stocks, mutual funds, and
similar vehicles. The company has operations in 16 countries.
Safe
Harbor Statement under the Private Securities Litigation Reform Act of
1995
This press release
contains forward-looking statements. These statements relate to future events
or to future financial performance and involve known and unknown risks,
uncertainties, and other factors that may cause our actual results, levels
of activity, performance, or achievements to be materially different from any
future results, levels of activity, performance, or achievements expressed or
implied by these forward-looking statements. In some cases, you can identify
forward-looking statements by the use of words such as "may", "could", "expect,"
"intend", "plan", "seek", "anticipate", "believe", "estimate", "predict", "potential,"
or "continue" or the negative of these terms or other comparable terminology.
You should not place undue reliance on forward-looking statements because they
involve known and unknown risks, uncertainties and other factors that are, in
some cases, beyond our control and that could materially affect actual results,
levels of activity, performance, or achievements.
Other factors that could
materially affect actual results, levels of activity, performance, or achievements
can be found in Morningstar's filings with the SEC, including Morningstar's
Prospectus filed on May 4, 2005. If any of these risks or uncertainties
materialize, or if our underlying assumptions prove to be incorrect, actual
results may vary significantly from what we projected. Any forward-looking
statement you read in this press release reflects our current views with
respect to future events and is subject to these and other risks,
uncertainties, and assumptions relating to our operations, results of
operations, growth strategy, and liquidity. We assume no obligation to publicly
update or revise these forward-looking statements for any reason, whether as a
result of new information, future events, or otherwise.
©2006 Morningstar, Inc.
All rights reserved.
2

EX - 99 . 1 2 a06 - 6084 _ 1ex99d1 . htm EXHIBIT 99 . 1 Exhibit 99 . 1 Media Contact : Margaret Kirch Cohen 312 - 696 - 6383 margaret.cohen@morningstar.com Investors : Please submit questions to investors@morningstar.com or by fax to 312 - 696 - 6009 . FOR IMMEDIATE RELEASE Morningstar , Inc . Completes Acquisition of Ibbotson Associates CHICAGO , March 1 , 2006 - Morningstar , Inc . ( NASDAQ : MORN ) , a leading provider of independent investment research , today announced it has completed its previously announced acquisition of Ibbotson Associates , a leading provider of asset allocation research and services , for approximately $ 83 million in cash , subject to adjustments for working capital and other items . In addition , Morningstar anticipates realizing approximately $ 10 million in cash tax benefits in 2006 related to payment for the cancellation of Ibbotson 's stock options . Morningstar does not expect charges related to the acquisition to have a significant impact on net income or earnings per share . Ibbotson Associates was founded by Professor Roger Ibbotson in 1977 . The company 's business lines include investment advice ; investment consulting and research ; planning and analysis software ; educational and marketing services ; and a widely used line of NASD - reviewed presentation materials . Joe Mansueto , chairman and chief executive officer of Morningstar , said , " Many leading firms turn to Ibbotson because it is a leading authority on asset allocation . Similarly , our clients rely on Morningstar because of our expertise in security selection and investment research . By combining Ibbotson 's top - down allocation expertise with our bottom - up , fundamental research , we will be able to deliver an even stronger array of services to investors " . Ibbotson is based in Chicago and employs approximately 150 people . Morningstar plans to retain the majority of Ibbotson 's employees . 1 Roger Ibbotson will serve in an advisory role at Morningstar , reporting to Mansueto . Mike Henkel , president of Ibbotson Associates , will continue to lead Ibbotson 's retirement advice and investment consulting businesses , reporting to Tao Huang , chief operating officer of Morningstar . As a wholly owned subsidiary of Morningstar , Inc . , Ibbotson Associates will become a new unit of Morningstar 's Institutional business segment . Morningstar Associates , LLC , also offers retirement advice and investment consulting services . Because Ibbotson Associates and Morningstar Associates use different methodologies and platforms , Morningstar will operate the two businesses separately to ensure continuity for current clients . Clients may choose to keep their current service or select from a broader range of offerings under the combined organization . Ibbotson 's EnCorr software product will be integrated into Morningstar 's Data Services business , which is part of its Institutional segment . Ibbotson 's Portfolio Strategist ® , iPlan ™ , Components , Presentation Materials , and Training businesses will be integrated into Morningstar 's Advisor business . Ibbotson 's publications business , including the Stocks , Bonds , Bills and Inflation ® Yearbooks , will be integrated into Morningstar 's Individual segment . Ibbotson had $ 37.2 million in revenue for its fiscal year ended June 30 , 2005 . Morningstar will file a Report on Form 8 - K with the Securities and Exchange Commission by May 17 that includes pro forma historical financial statements for the combined company , as well as stand - alone historical financial statements for Ibbotson . About Morningstar , Inc . Morningstar , Inc . is a leading provider of independent investment research in the United States and in major international markets . 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 approximately 145,000 investment offerings , including stocks , mutual funds , and similar vehicles . The company has operations in 16 countries . Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 This press release contains forward - looking statements . These statements relate to future events or to future financial performance and involve known and unknown risks , uncertainties , and other factors that may cause our actual results , levels of activity , performance , or achievements to be materially different from any future results , levels of activity , performance , or achievements expressed or implied by these forward - looking statements . In some cases , you can identify forward - looking statements by the use of words such as " may " , " could " , " expect , " " intend " , " plan " , " seek " , " anticipate " , " believe " , " estimate " , " predict " , " potential , " or " continue " or the negative of these terms or other comparable terminology . You should not place undue reliance on forward - looking statements because they involve known and unknown risks , uncertainties and other factors that are , in some cases , beyond our control and that could materially affect actual results , levels of activity , performance , or achievements . Other factors that could materially affect actual results , levels of activity , performance , or achievements can be found in Morningstar 's filings with the SEC , including Morningstar 's Prospectus filed on May 4 , 2005 . If any of these risks or uncertainties materialize , or if our underlying assumptions prove to be incorrect , actual results may vary significantly from what we projected . Any forward - looking statement you read in this press release reflects our current views with respect to future events and is subject to these and other risks , uncertainties , and assumptions relating to our operations , results of operations , growth strategy , and liquidity . We assume no obligation to publicly update or revise these forward - looking statements for any reason , whether as a result of new information , future events , or otherwise . © 2006 Morningstar , Inc . All rights reserved . 2
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