Morningstar Australasia to Acquire Intech Pty Ltd From IOOF
June 01 2009 - 10:30PM
PR Newswire (US)
CHICAGO and SYDNEY, June 1 /PRNewswire-FirstCall/ -- Morningstar
Australasia Pty Limited, an Australian subsidiary of Morningstar,
Inc. (NASDAQ:MORN), has entered into a definitive agreement to
acquire Intech Pty Ltd, a leading provider of multi-manager and
investment portfolio solutions in Sydney, Australia, from IOOF
Transition 3 Pty Ltd., a subsidiary of IOOF Holdings Limited
(ASX:IFL). The companies expect to complete the transaction during
the next few months, subject to satisfaction of customary closing
conditions. Terms were not disclosed. Founded in 1989, Intech
advises some of Australia's major superannuation funds,
institutional clients, and investment platforms. Through the Intech
Investment Trusts, Intech manages a range of single sector,
alternative strategy, and diversified investment portfolios. As of
March 31, 2009, Intech had approximately A$4 billion (approximately
U.S.$3.2 billion) in assets under management. Intech also has one
of the leading separately managed account databases in Australia
and offers the Intech Desktop Consultant, a research software
product for institutions. IOOF, with its registered office in
Melbourne, acquired the Skandia Australia and Intech businesses
from OM Group (UK) Limited (Old Mutual) in March 2009. The IOOF and
Australian Wealth Management businesses merged in April 2009. "Our
acquisition of Intech supports one of Morningstar's key growth
strategies, which is to become a global leader in funds-of-funds
investment management," said Andrew Bird, chief executive officer
of Morningstar Australasia. "Morningstar is already a significant
provider of investment management and consulting services through
Morningstar Associates and Ibbotson Associates, with more than
U.S.$63 billion (approximately A$79 billion) in assets under
advisement. We're committed to building this business and providing
stability to Intech's clients. By becoming part of the Morningstar
family of companies, Intech will have access to Morningstar's
investment consulting expertise and network of research analysts
around the globe." Chris Kelaher, managing director of IOOF
Holdings Limited, said, "The sale of Intech allows IOOF to focus on
its core competencies of superannuation administration, investment
management, and financial planning through a vertically integrated
wealth management model. We expect a smooth transition, with
Intech's investment team continuing to provide the high-quality
strategic advice and service they are known for. We believe
Intech's clients will benefit from the experience and resources of
a global firm like Morningstar." Intech has approximately 35
employees in Australia. John Gethin-Jones, chief executive officer,
will continue to run the business until the acquisition is
completed. At that time, Anthony Serhan, head of research for
Morningstar Australasia, will oversee the business. About
Morningstar, Inc. Morningstar, Inc. is a leading provider of
independent investment research in North America, Europe,
Australia, and Asia. The company offers an extensive line of
Internet, software, and print-based products and services for
approximately 6.5 million individual investors, 260,000 financial
advisors, and 3,300 institutional clients. Morningstar provides
data on more than 300,000 investment offerings, including stocks,
mutual funds, and similar vehicles, along with real-time global
market data on more than 4 million equities, indexes, futures,
options, commodities, and precious metals, in addition to foreign
exchange and Treasury markets. The company has operations in 19
countries and minority ownership positions in companies based in
three other countries. Morningstar established its operations in
Australia in 1999. The company's products and services include a
local version of Advisor Workstation, the Morningstar.com.au Web
site for retail investors, stock research software, trade magazines
and newsletters, widely distributed fund and share datafeeds, and
investment consulting services. In 2006, Morningstar acquired
Aspect Huntley Pty Limited, a leading provider of equity
information, research, and financial trade publishing in Australia.
About IOOF Holdings Limited The IOOF Group is an Australian
financial services provider specializing in superannuation
management and administration, investment management, and financial
advice. In April 2009, the IOOF and Australian Wealth Management
businesses merged under IOOF Holdings, creating a combined business
with a complete and diverse range of wealth management solutions
for its 700,000 clients. The combined group has more than A$85
billion in Funds Under Management, Administration, Advice and
Supervision (FUMAS) and operates throughout Australia. IOOF
Holdings listed on the Australian Securities Exchange in 2003.
Caution Concerning Forward-Looking Statements This press release
contains forward-looking statements as that term is used in the
Private Securities Litigation Reform Act of 1995. These statements
are based on our current expectations about future events or future
financial performance. Forward-looking statements by their nature
address matters that are, to different degrees, uncertain, and
often contain words such as "may," "could," "expect," "intend,"
"plan," "seek," "anticipate," "believe," "estimate," "predict,"
"potential," or "continue." These statements involve known and
unknown risks and uncertainties that may cause the events we
discussed not to occur or to differ significantly from what we
expected. For us, these risks and uncertainties include, among
others, general industry conditions and competition, including the
global financial crisis that began in 2007; the impact of market
volatility on revenue from asset-based fees; damage to our
reputation resulting from claims made about possible conflicts of
interest; liability for any losses that result from an actual or
claimed breach of our fiduciary duties; financial services industry
consolidation; a prolonged outage of our database and network
facilities; challenges faced by our non-U.S. operations; and the
availability of free or low-cost investment information. A more
complete description of these risks and uncertainties can be found
in our filings with the Securities and Exchange Commission,
including our Annual Report on Form 10-K for the year ended
December 31, 2008. If any of these risks and uncertainties
materialize, our actual future results may vary significantly from
what we expected. We do not undertake to update our forward-looking
statements as a result of new information or future events. (C)2009
Morningstar Inc. All rights reserved. Media Contacts: Morningstar
Margaret Kirch Cohen, 312-696-6383, Phillip Gray, +61 2 9276 4456,
IOOF Holdings Melinda Hofman, +61 02 9028 1054, Intech Pty Ltd Kate
Hage, +61 2 8022 2864, DATASOURCE: Morningstar, Inc. CONTACT:
Margaret Kirch Cohen, +1-312-696-6383, , or Phillip Gray, +61 2
9276 4456, , both of Morningstar, Inc.; or Melinda Hofman of IOOF
Holdings, +61 02 9028 1054, ; or Kate Hage of Intech Pty Ltd, +61 2
8022 2864, Web Site: http://www.morningstar.com/
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