Morningstar snaps up equity research shop

Morningstar Inc. said it will acquire Sydney, Australia-based Aegis Equities Research, an equity research firm, in the next few weeks.

The 11-year-old Aegis provides Web-based equities research and market commentary on about 200 Australian Securities Exchange-listed companies to institutional investors, financial advisers and retail clients, Chicago-based Morningstar said in a release.

The company will acquire Aegis through its Morningstar Australasia Pty Ltd. subsidiary.

Financial terms of the transaction weren’t disclosed.

“Morningstar and Aegis have highly complementary businesses, research styles, and market coverage in equity research,” said Andrew Bird, chief executive officer of Morningstar Australasia. “The combination of our offerings and creation of a larger analyst team will enable us to broaden and deepen our coverage of Australian listed companies, provide Australian clients with more robust independent research, and give us the potential to expand our services in multiple delivery channels.”

The Australian purchase follows Morningstar’s March 19 acquisition of Horsham, Pa.-based Realpoint LLC, a structured finance research and ratings firm, for $52 million.

Last month, Morningstar acquired Peekskill, N.Y.-based Financial Fineprint Inc., a privately held firm that provides investment research based on Securities and Exchange Commission filings.

Aegis CEO Peter Leodaritsis will continue to lead that company until the acquisition is complete. Thereafter, Aegis employees will report to Mr. Bird and Mr. Leodaritsis will serve as a part-time consultant for six months to assist in the transition, Morningstar said.

Lynne Marek is a reporter for Crain’s Chicago Business, an InvestmentNews sister publication