Morningstar acquires financial publisher Footnoted

Investment researcher Morningstar Inc. said Tuesday it acquired the Footnoted business of Financial Fineprint Inc., which reviews companies’ regulatory filings and highlights examples of potential financial troubles or excessive compensation.

Terms of the transaction were not disclosed.

The acquisition by Chicago-based Morningstar includes the Footnoted.org Web site and the Footnoted Pro service of Financial Fineprint, a privately held firm in Peekskill, N.Y.

The free Web site, read by professional money managers and analysts as well as individual investors, was founded in 2003 by Michelle Leder, an author and journalist.

Footnoted’s research staff examines Securities and Exchange Commission filings for what it considers to be evidence of aggressive accounting, excessive compensation or other potential trouble signs at publicly traded companies. Footnoted Pro is a service for institutional investors such as hedge funds.

Morningstar, which publishes research and commentary on mutual funds and other investments, will make some Footnoted content available on its own Web site. Also, Morningstar will offer Footnoted Pro to its clients, including individual and institutional investors and financial advisers.

Shares of Morningstar rose 11 cents to $45.35 in midday trading.