Morningstar to buy LCD for up to $650 million in cash

Morningstar to buy LCD for up to $650 million in cash

Bloomberg: Morningstar Inc. agreed to buy data and news service provider Leveraged Commentary & Data from S&P Global for as much as $650 million in cash.

Chicago-based Morningstar will pay $600 million at closing and agreed to make an additional payment of $50 million six months later, if certain conditions related to the transition of LCD customers are met, according to a statement. The sale was required by European regulators to clear S&P’s $39 billion acquisition of IHS Markit Ltd., which closed at the end of Feburary.

Morningstar, which is known for its investment research and mutual fund ratings, plans to fund the purchase of LCD through a combination of cash on hand and a new credit facility, it said in a statement. The deal is expected to close in the third quarter.