Morningstar to Take Full Ownership of Sustainalytics

Its latest deal to acquire Sustainalytics' shares involves a cash payment at closing of approximately 55 million euros, equivalent to nearly $60 million, plus additional cash payments in 2021 and 2022 based on a multiple of Sustainalytics revenues for the prior two years.

Morningstar estimates that the enterprise value of Sustainalytics is worth 170 million euros, or about $184.4 million.

"By coming together, Morningstar and Sustainalytics will fast track our ability to put independent, sustainable investing analytics at every level — from a single security through to a portfolio view — in the hands of all investors," said Morningstar CEO Kunal Kapoor in a statement. 

He noted that ESG analysis "is the future of long-term investing," whether it's used to assess a company's competitive advantage in protecting its profits and market share — its so-called economic moat — or the stability of its credit rating. 

"Modern investors in public and private markets are demanding ESG data, research, ratings and solutions in order to make informed, meaningful investing decisions," Kapoor said. From climate change to supply-chain practices, the nature of the investment process is evolving and shining a spotlight on demand for stakeholder capitalism."

— Check out COVID-19 Will Boost Interest in ESG Investing: Nuveen on ThinkAdvisor.