Morningstar buys equity analyst firm

By Steven Lamb | April 24, 2009 | Last updated on April 24, 2009
2 min read

Morningstar Research has entered into a deal to acquire the research and data business of Toronto-based Computerized Portfolio Management Services Inc. (C.P.M.S.).

“Most investment managers in Canada use C.P.M.S.’ equity research and data, and Morningstar is a leading provider of fund research and data in the United States and Canada,” said Scott Mackenzie, president and chief executive officer of Morningstar Research Inc. “By acquiring this business, we’ll be able to expand our global investment data and research offerings.”

C.P.M.S. tracks fundamental stock data for about 4,000 securities in the United States and Canada. It also tracks and provides brokerage earnings estimates for Canadian equities.

“Though C.P.M.S.’s clientele is primarily institutional, the retail advisor market will be a major growth area for its services,” Mackenzie continued. “Combining the best equity research data with the best investment fund data in Canada strengthens our offering all the way around By combining the best of both worlds, we will be able to provide Canadian financial advisors with the ultimate desktop workstation.”

The deal is expected to close in the second quarter, with Morningstar paying $16.1 million for C.P.M.S.

“As part of our long-term goals and objectives, we’ve always looked to expand our presence outside of Canada,” said Rick Przybylski, founder, president and chief executive officer of C.P.M.S. “Morningstar’s global fundamental database, distribution network, and reputation will provide opportunities to enhance our equity research and data business and expand our client base.”


Steven Lamb