Investing research provider Morningstar, Inc. recently announced it will acquire international business from Praemium Limited, a wealth management technology platform based in the United Kingdom.
According to a press release, Morningstar will acquire 100% of operations in the U.K. as well as Hong Kong and Dubai. The transactions between the companies amount to £35 million and are subject to completion adjustments.
“Praemium has a fast-growing U.K. and international business and a talented team we look forward to welcoming to Morningstar," said Daniel Needham, president of wealth management solutions for Morningstar. “Technology is playing a larger role in everyone's lives and expectations for how companies deploy it are evolving quickly. Advisers and the investors we jointly serve are no exception, and Praemium's digital-first capabilities will allow us to reduce friction, lower costs, provide more choice, and improve efficiency for advisers. This gives advisers time back to deliver better advice, empowering investor success.”
The platform Praemium uses serves approximately 500 independent financial advisers. The "end-to-end solution from Praemium will add to Morningstar’s data, fund profiles, portfolio analytics and investment management capabilities,” the release stated.
"The focus throughout the deal process has been on finding a new owner that is the right fit for us and the right fit for our customers,” Praemium U.K. and international managing director Mark Sanderson said. “We wanted a committed parent with a long-term view and the resolve to uphold our best-in-class platform experience, free from customer disruption. We were looking for the enthusiasm and drive to continue the Praemium growth story. We know with this proposed deal with Morningstar, we can confidently say we have found the perfect fit.”
The transaction is subject to approval from the Financial Conduct Authority in the U.K. and Jersey Financial Services Commission. It is expected to be finalized in the second or third quarter of 2022.