Chicago-based research firm Morningstar Inc. is acquiring Seattle-based PitchBook Data Inc. in a deal valuing the private market research firm at US$225 million.
Morningstar, which already owned a 20% stake in PitchBook, is buying the rest of the firm for approximately US$180 million. Morningstar originally invested US$1.2 million in PitchBook as a Series A investor in September 2009 and put in another US$10 million as a Series B investor in January 2016. Subject to customary closing conditions, the two companies expect the transaction to close in the fourth quarter.
PitchBook provides data and research on various aspects of the private capital markets, including venture capital, private equity and mergers and acquisitions. After the deal, it will continue to use its name, and will still be led by founder and CEO John Gabbert.
“Both Morningstar and PitchBook share the goal of bringing transparency to the investment landscape, and PitchBook is in a great position to continue its strong growth trajectory as private markets and private companies are areas of rapidly growing investor interest,” says Kunal Kapoor, the current president of Morningstar who’s slated to become CEO on Jan. 1, 2017, in a statement.
“We look forward to working with PitchBook to help investors and advisors better understand and navigate this evolving area of the market,” says Kapoor, who has served on PitchBook’s board of directors since 2012. “Over time, we plan to add some of Morningstar’s proprietary research capabilities to this dataset, and we also see meaningful opportunities to expand the business globally.”
“Joining forces with Morningstar will help us enter into our next stage of growth,” adds Gabbert in a statement. “As investors increasingly broaden their horizons beyond traditional public markets and investments, the multi-asset capabilities Morningstar is building will become even more valuable.”